Gold Rate Today: Prices retreat on hopes of pause in US interest rates

Gold prices retreated from their recent four-week highs of $1968 per ounce but managed to maintain their upward trajectory and held steady near $1950 per ounce, marking two consecutive weeks of gains in global prices. This positive trend in prices was further emphasized by its best weekly gain since April.

Inflation cooling off in the US contributed to the recent surge in gold prices. This decline in inflationary pressures raised hopes among investors that the US Federal Reserve might consider a pause in interest rate hikes. Such a move could potentially support gold prices, as low interest rates tend to make non-yielding assets like gold more attractive.

However, the resilience demonstrated by the US economy has limited the extent of gains in the precious metal. The economy has shown signs of strength and recovery, which has drawn investors' attention to other asset classes, resulting in some diverting their investments away from gold.

Market participants now await the upcoming monetary policy meeting of the Fed on July 26, which will provide crucial insights into the central bank's stance on interest rates and its overall policy. Any indications of a potential pause or adjustment in interest rates could significantly impact gold prices.

Latest Gold Prices:

The latest Mumbai Gold Rate on July 17 is as follows:The 24-carat 999 gold bar of 10 grams is trading at Rs 5,945. On the other hand, the 22-carat gold rate for a 10-gm piece of jewellery stands at Rs 5,725, while the rate for an 18-carat jewellery item is Rs 4,740. These prices have been sourced from Shree MumbaDevi Dagina Bazaar Association, and do not include a 3 per cent Goods and Services Tax (GST).