Gold prices continued their upward momentum on Tuesday, with COMEX gold rising 0.17% to $4,391.30 per ounce after trading between $4,382 and $4,414.10 an ounce. The precious metal has maintained its position above the one-week high of $4,352.39 per ounce reached on Friday, despite facing pressure from expectations of higher US interest rates. As per CNBC TV18, spot gold was little changed at $4,344.29 an ounce at 0151 GMT, while US gold futures remained steady at $4,381.80 an ounce. The metal's resilience comes as investors continue watching comments from Federal Reserve officials for clues on the central bank's next policy moves. Spot silver rose 0.3% to $66.19 an ounce, with prices moving between $66.515 and $67.325 an ounce. According to Pepperstone's Chris Weston, "While crude has come modestly off its recent highs, a reversal higher that builds inflation expectations would only intensify the rates story, and gold would likely continue to face headwinds."
The Federal Reserve raised its benchmark rate by 25 basis points to 3.75%-4.00% at its September meeting, marking the first rate hike in three years and the first policy adjustment since Kevin Warsh took office as Fed Chair. As reported by CNBC TV18, St. Louis Fed President Alberto Musalem said the US central bank may need to raise rates further as strong demand and a broader commodity price shock continue to add to inflationary pressures. The Fed statement noted that US economic activity continues to expand at a solid pace, with domestic spending remaining resilient, productivity growth strong, and capital investment robust, while inflation remains elevated. Updated quarterly projections showed 16 of 18 policymakers expect at least one more 25-basis-point rate hike by the end of 2026, while only two see rates holding steady from current levels. The unanimous nature of the decision suggests a consensus within the central bank about the need to address persistent inflation, making it more difficult for markets to anticipate a pivot toward easier policy in the near term.
Gold rates in India remained steady today after extending their gains for the second consecutive session, with 24 Karat (24K) gold rising by ₹142 per gram to ₹15,584. The latest move has pushed the price of 24 Karat gold up by a cumulative ₹30,000 per 100 grams over the past two sessions, giving the yellow metal fresh momentum as lower oil prices eased concerns over inflation. 22 Karat (22K) gold stood at ₹14,285 per gram, while 18 Karat (18K) gold was priced at ₹11,688 per gram. Silver joined the upward move for a second consecutive day, with the price remaining unchanged at ₹255 per gram or ₹2,55,000 per kilogram. According to Goodreturns, all metals were headed for weekly gains, with gold demand in India remaining subdued this week as buyers held back purchases in anticipation of lower prices. In major south cities including Chennai, Hyderabad, and Bengaluru, the 10-gram gold price is nearing the ₹1.56 lakh mark. 24-carat gold price gained by ₹14,200 to ₹15,58,400 per 100 grams and 22-carat gold rates jumped by ₹13,000 to ₹14,28,500 per 100 grams across these cities.
The US Dollar rose to a more than seven-week high, making greenback-priced bullion expensive for holders of other currencies, which provided some headwinds to gold's rally. As per The Economic Times, although the dollar's strength has been a key factor supporting precious metals, it also makes gold more expensive for international buyers. Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., noted that "Gold faces key support near $4,275 and resistance around $4,430-4,500, with a break lower opening the path to $4,150. Silver's Head and Shoulders pattern puts $62.5 support in focus - a breakdown could send prices toward $60 and $57, while $67 caps near-term gains." However, according to Ryan McKay, an analyst at TD Securities, "Gold is "holding extremely strong" following the rate-hike with hawkish outlook, with falling energy prices offering support. Despite a hiking cycle being priced in, the broader precious metals landscape remains extremely favorable," with near-term weakness "increasingly seen as a buying opportunity." The Bloomberg Dollar Spot Index was little changed after rising 0.1% the previous session. Despite recent volatility, investors have continued to flock to bullion via gold-backed exchange-traded funds (ETFs), with ETFs tracked by Bloomberg seeing inflows for eight consecutive days and around 50 tons of inflows into bullion-backed ETFs so far in September, marking a third month of gains.
In India, gold futures declined on Monday (September 21), with MCX October gold falling ₹832, or 0.54%, to ₹1.53 lakh per 10 grams. The contract had gained ₹1,597, or 1.04%, in the previous week, as reported by CNBC TV18. The stronger US dollar and renewed concerns over further rate hikes weighed on domestic gold prices, while Indian buyers remained cautious amid subdued retail demand. Prithviraj Kothari, managing director at RiddiSiddhi Bullions and president of the India Bullion and Jewellers Association, said gold and silver ended the previous week higher, with spot gold closing at $4,378 an ounce and silver gaining about 2.7%. Kothari noted that gold was holding a technical range of $4,250-$4,450 an ounce, while silver remained between $62.50 and $67.50 an ounce. Investors are also tracking crude oil prices and developments around potential US-Iran talks at the United Nations General Assembly this week, with oil prices gaining on Tuesday after falling over the previous few sessions.
