COMEX Gold Rises 0.17% to $4,391.30 as Fed Signals Higher Rates
COMEX gold hit $4,391.30 on September 22 while silver reached $66.80. Fed officials warned that further rate hikes may be necessary to curb inflation.
Key points
- COMEX gold rose 0.17% to $4,391.30 per ounce on September 22, while silver gained 0.58% to $66.80.
- Federal Reserve officials signaled that further rate hikes may be necessary to control persistent inflationary pressures.
- Indian gold prices ranged between 1.50 and 1.55 lakh rupees per 10 grams amid subdued retail demand.
COMEX gold climbed 0.17 percent to $4,391.30 per ounce on September 22. The metal traded within a range of $4,382 to $4,414.10 during the session. Silver prices also increased, gaining 0.58 percent to reach $66.80 an ounce.
These gains occurred despite a stronger US dollar and renewed concerns over monetary policy. The Federal Reserve raised its policy rate by 25 basis points last week. Officials indicated that further increases might be required to control inflation.
Fed Officials Warn of Continued Rate Hikes
St. Louis Fed President Alberto Musalem stated that the central bank may need to raise rates further. Strong demand and commodity price shocks continue to add to inflationary pressures. These factors limit the upside potential for precious metals.
Chris Weston, head of research at Pepperstone, noted that higher crude oil prices intensify the rates story. This dynamic creates headwinds for gold prices. Investors are closely monitoring these macroeconomic signals for directional cues.
Oil Prices and Geopolitics Shape Market Sentiment
Crude oil prices gained on Tuesday after falling in previous sessions. Investors are tracking developments around potential US-Iran talks at the United Nations. These geopolitical factors influence broader risk sentiment in commodity markets.
A stronger US dollar and higher yields weigh on domestic gold prices. Indian buyers remain cautious amid subdued retail demand, according to analysts cited by PTI. The rupee exchange rate also plays a key role in local bullion pricing.
Indian Bullion Prices Face Technical Resistance
Gold held a technical range of $4,250 to $4,450 per ounce last week. Spot gold closed at $4,378, while silver gained about 2.7 percent. Domestic prices in India fluctuated between 1.50 lakh and 1.55 lakh rupees per 10 grams.
Silver traded around the 2.40 lakh rupee per kilogram mark. Vikram Subburaj, CEO of Giottus.com, said a weaker rupee can cushion international price declines. However, this currency movement can also add to domestic inflation pressures.
