Gold targets Rs 1.57 lakh on weak dollar, analysts say

Gold prices rose on Monday as the US dollar weakened and expectations of a Federal Reserve rate hike next month receded. Spot gold gained 0.4 per cent to $4,391.49 per ounce. Domestic gold futures on the MCX rose nearly 2 per cent last week to close at Rs 1.54 lakh per 10 grams.

Pranav Mer, Senior Vice President at JM Financial Services, said gold is projected to move towards Rs 1.57 lakh per 10 grams and silver towards Rs 2.54 lakh per kg. Jateen Trivedi of LKP Securities noted that MCX gold gained nearly 9.5 per cent in August, making consolidation and profit-booking likely in the near term. Manav Modi of Motilal Oswal said the weekly bias remains bullish as long as gold holds above Rs 152,000, with Rs 157,600-158,000 as immediate resistance.

Silver also rose, with the September MCX contract gaining Rs 4,458, or 1.9 per cent, during the week to close at Rs 2.35 lakh per kg. Analysts expect elevated volatility due to geopolitical developments and key global economic data. Markets see only around a one-in-three probability of a September Fed rate hike.