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Gold prices continued their bullish trend for the third consecutive day on Friday, September 18, as a recent decline in crude oil prices supported the bullion rally, while limited gains in the US dollar and a drop in global bond yields also aided sentiment. MCX gold for October delivery advanced another ₹1,620 per 10 grams to hit a day's high of ₹1,54,600, taking its three-day cumulative gain to ₹3,791. The rally has also put bullion on track to post its second consecutive weekly gain. The recent gains have narrowed gold's September losses to just 0.27%. The precious metal has also recovered ₹4,335 from its monthly low of ₹1,49,665, highlighting the strength of the recent rebound. The yellow metal had initially reacted negatively to the US Federal Reserve's 25-basis-point rate hike on Wednesday, with policymakers signalling the possibility of further tightening. However, gold subsequently found relief from falling oil prices, which triggered renewed hopes that inflation could remain under control. Gold prices have also drawn support from the limited rise in the US Dollar Index following the Fed's policy tightening. However, the index continues to hover near a seven-week high, with the US dollar trading around 100.2 against a basket of currencies. A stronger dollar generally makes the yellow metal more expensive for holders of other currencies, which can weigh on demand. Although gold is traditionally viewed as a hedge against inflation, higher rates can curb its demand by increasing the appeal of yield-bearing assets. While the recent rebound has strengthened gold's momentum, analysts remain cautious about chasing prices at current levels, pointing to continued uncertainty around global interest rates and bond yields. Vikram Subburaj, CEO, Giottus.com, said the important point for Indian investors is that the recent correction has been followed by a strong recovery, but volatility is still elevated. The Fed raised its policy rate to 3.75%-4.00% on September 16, and expectations of another hike remain in focus. At the same time, the US 10-year Treasury yield remains close to 5%, while Brent crude is above $100 a barrel. These factors can quickly change the direction of bullion. Subburaj said domestic prices will also depend on the rupee. A weaker rupee can cushion a fall in international gold and silver, while a stronger rupee can limit gains on MCX. Investors should therefore avoid treating the latest rebound as a signal to chase prices, Subburaj said. For long-term allocations, staggered buying can help manage volatility. Traders using leverage should reduce position sizes and maintain strict stop-losses until the global rate and yield outlook becomes clearer, he added. Pinky Yadav, commodity fundamental analyst at Choice Broking, said, “Bullion prices gained support as falling crude oil prices relieved inflation pressures, driving bond yields lower. China bolstered sentiment by increasing gold reserves while paring U.S. Treasury holdings. Investors remain focused on Middle East developments and central bank policies as key drivers for precious metals.” Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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