Gold Prices to Remain Volatile Amid Fed Decision and US-Iran Conflict
Key Highlights
- According to Mer, all three central banks are expected to raise interest rates Markets will also watch inflation data from India, Germany, the UK, the eurozone, the US and Japan.
- According to Mer, all three central banks are expected to raise interest rates Markets will also watch inflation data from India, Germany, the UK, the eurozone, the US and Japan.
The September 15-16 meeting of the Federal Open Market Committee (FOMC) will be the key global event for bullion markets. The Fed’s policy decision and Chair Kevin Warsh’s commentary are likely to set the tone for precious metals.
Commodity Markets Will Remain Closed
Commodity markets will remain closed for the morning session on Monday due to Ganesh Chaturthi. “Going ahead, gold will remain highly sensitive to Fed commentary, crude oil movements, the US dollar, inflation expectations and geopolitical developments,” Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities.
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The domestic market showed a mixed trend last week. Gold futures for October delivery edged up Rs 17 to Rs 1,52,784 per 10 grams on the Multi Commodity Exchange. Meanwhile, silver fell Rs 2,684, or 1.13 per cent, to settle at Rs 2.34 lakh per kilogram.
Global Market Comex Gold Futures
In the global market, Comex gold futures for December delivery fell 1.5 per cent to USD 4,408.9 per ounce. Meanwhile, silver declined 2.34 per cent to USD 65.19 per ounce.
Investors will also track monetary policy decisions from the Bank of England and Bank of Japan following the Fed. According to Pranav Mer, senior vice president, EBG - commodity &. currency research, JM Financial Services Ltd, all three central banks are expected to raise interest rates.
Markets will also watch inflation data from India, Germany, the UK, the eurozone, the US and Japan. China’s investment and factory activity data will be important for industrial metals, Mer shared.
Also Read: Bahrain Court Rejects HDFC Bank's AT1 Bonds
Crude oil prices ended the week above $100 a barrel amid escalating hostilities in West Asia. Adding another key variable for bullion markets.
Trivedi shared the outlook for gold and silver remains volatile and data-driven. With the Fed decision likely to provide the next major directional trigger.
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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.
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