Gold prices rise after Syria coup, expectation of interest rate cut in the US

Gold has opened with a rise in the first trading session of the week amid rising global tensions due to political turmoil in Syria. On the Multi Commodity Exchange MCX, gold has risen by Rs182 per gram to Rs76,801 per 10 grams, which closed at Rs76,619 per 10 grams in the previous closing session. That is, in today's session, gold prices have seen a rise of 0.23 percent or Rs 182.

While gold prices are rising, silver is trading with a decline. Silver has slipped by Rs 448 or 0.45 percent to Rs 92023 per kg on MCX. In the previous session, silver closed at Rs 92,448 per kg. The rise in gold has come due to global events and is also being seen due to the expectations of a quarter percent cut in interest rates by the Federal Reserve in the US on December 18, 2024.

This week, retail inflation data will be released in India on December 12, 2024, while inflation rate data will also be announced in the US on Wednesday, December 11, 2024. There is hope of a cut in interest rates by the Federal Reserve in the US, due to which further rise in gold prices is expected in the coming days. On top of that, the incident in Syria can also fuel gold prices.

On Sunday, rebels in Syria captured the capital Damascus and ousted Syrian President Bashar al-Assad from power. After 13 years of civil war, Bashar al-Assad had to flee to Russia. The Assad family has been ruling there for the last six decades. On the other hand, due to political instability in France and the ongoing war between Russia and Ukraine, gold may remain strong in the coming days.