Gold Falls 1.5% as Fed Decision Looms
Comex gold futures dropped to $4,408.90 last week. Analysts expect continued volatility ahead of the Federal Reserve's September meeting.
Comex gold futures for December delivery fell by 1.5 percent to $4,408.90 per ounce last week. Silver futures declined by 2.34 percent to settle at $65.19 per ounce. The decline occurred despite mixed domestic trends in India. Global precious metal prices remain under sustained selling pressure. Market participants are closely monitoring upcoming central bank decisions.
The Federal Open Market Committee meets on September 15 and 16. This event serves as the primary driver for bullion markets next week. Analysts from GN auto markets and commodities sector note that Fed commentary will set the tone. A hawkish stance could trigger further selling. A moderate approach might support a price recovery.
Domestic Futures Show Mixed Results
Indian gold futures for October delivery rose by 17 rupees to 1,52,784 per 10 grams. Silver futures fell by 2,684 rupees to 2.34 lakh per kilogram. The domestic downside was capped by a sharp drop in the rupee. Commodity markets remained closed for the morning session on Monday. This closure was due to the Ganesh Chaturthi holiday.
Geopolitics and Oil Impact Prices
Crude oil prices ended the week above $100 per barrel. Escalating hostilities in West Asia add volatility to the market. Strong crude oil prices often correlate with higher inflation expectations. Investors also track the US dollar index for directional cues. A stronger dollar typically weighs on precious metal values.
Global Inflation Data Under Watch
Investors will monitor inflation data from India and Germany. The United Kingdom, Eurozone, US, and Japan will also release key figures. China's investment and factory activity data remain important for industrial metals. The Bank of England and Bank of Japan are expected to raise rates by 25 basis points. These decisions could influence global liquidity and asset prices.
