Gold recovers on bargain buying, but Fed rate hike risks linger

Gold rebounded above $4,200 per ounce on Friday as bargain hunters stepped in following the previous session?s nearly $100 decline, while renewed weakness in the US dollar offered additional support. The dollar index slipped below 101.6, extending losses as the selloff in technology and artificial intelligence stocks prompted investors to reassess the sustainability of the AI-driven investment boom and its broader economic implications. However, the recovery in bullion remained vulnerable to shifting Federal Reserve expectations, with stronger-than-expected US economic data keeping the prospect of further interest rate hikes in focus. On the MCX, December gold futures climbed more than 1% to ₹1,48,545 per 10 grams, recovering ground but remaining below the crucial ₹1,50,000 threshold.

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