Gold Price: Gold prices may remain in limited range for some time, but the US central bank (Federal Reserve )’s monetary policy reviews in September are expected to increase gold prices in total amid expectations of reducing interest rates. Experts said that traders would closely monitor the second quarter GDP and PCE (Personal Consumption Expenditure) inflation like some major economic figures of America and the statements of US central bank officials. These information will help them understand what will be the monetary policy of the American central bank and what will be the direction of the gold market.
Gold trend expected to be positive
JM Financial Services Vice President Pranav Mer said, “Gold prices may be stable for some time, but their trend is expected to be positive.” He said that the comments of the US Federal Reserve chief Jerome Powell have increased the expectations of the interest rate cut in the September meeting. Investors will also keep an eye on geopolitical and business events. Mer said, “The market will closely monitor the Russia-Ukraine peace process and the additional fees levied on India from 27 August,” said.
Gold reaches 1 lakh on MCX again
Last week, Gold once again reached Rs 1 lakh per 10 grams on the Multi Commodity Exchange (MCX) and increased by Rs 956 (one percent) to Rs 1,00,391. The lead was observed by the US central bank chairman Geom Powell after indicating possible changes in the monetary policy at the Jackson Hole seminar, where he indicated that the central bank could cut interest rates soon after December. The upcoming FOMC (Federal Open Market Committee) meeting of the US central bank is scheduled on 16-17 September. However, Powell also said that if the tariff imposed by US President Donald Trump has a major impact on domestic prices, the interest rate cut can also be avoided by the end of the year.
Why the fall in gold prices declined
According to Prathamesh Mallya, Angel One Deputy Vice President (Research, Non-Agricultural Products and Mudra), “There was no such big news or incident in the market in the last few weeks that could take the price of gold up, hence the prices fell. But the recent statement of American central bank chairman Geom Powell gave expectations to investors again and increased the market. Mallya further said that uncertainty in global markets still remain. He said, “Russia-Ukraine peace talks are being discussed, but how practical the result will be, there are still questions on it. At the same time, the issue of tariff in Trump’s office seems endless. ”
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