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All eyes are on the Fed’s monetary policy decision on 17 September. A 25 basis point cut is expected, which could temporarily bring down gold prices. However, the downside will be limited due to weakness in the US employment market.
Gold hits new record high at $3,685 amid economic concerns
New Delhi: According to financial experts, gold prices are likely to rise in the coming months. Investors are better off buying gold when the price falls rather than chasing a higher rally.
At the time of this article, spot gold was trading at $3,682, up nearly 1% during the day. Gold touched a new record high of $3,685, higher than the previous record of $3,674. The MCX October contract rose 0.90% to ₹1,10,294. By the weekend, gold prices had gained 1.58%, marking a fourth consecutive week of gains.
Gold Prices soar to record highs amid global economic uncertainty and weak dollar
The latest data from China was disappointing. Retail sales in August remained limited at 3.4%, lower than the previous month. Fixed-asset investment has also declined, raising questions about China's 5% GDP growth target. The EU trade balance declined and US Empire manufacturing data also remained weak.
Representatives of the US and China are discussing trade and security issues in Madrid. The TikTok deal has been agreed upon and a telephone conversation between Xi Jinping and Trump may take place on September 19. China has started an anti-dumping investigation on US chips. Trade talks will also be held between India and the US on September 16.
The US dollar index has fallen 0.30% to 97.30. This is the situation ahead of the Federal Reserve's monetary policy announcement on September 17. Two and ten-year US bond yields have also seen a decline.
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The current gold price is above the 1980 inflation-corrected record of $3,590, reflecting gold's strength.
Global gold ETF holdings are at 94.61 million ounces, the highest since November 2022.
All eyes are on the Fed's monetary policy decision on 17 September. A 25 basis point cut is expected, which could temporarily bring down gold prices. However, the downside will be limited due to weakness in the US employment market. Gold prices are likely to rise to $3,800 (₹1,34,000).
Gold prices may rise at this time, but investors are advised to avoid chasing the rally and buy when the price falls. Support levels are at $3,600, $3,550, and $3,500, while temporary resistance will be at $3,700.
This report provides a comprehensive look at the current state of gold and its future prospects, allowing investors to make better decisions.
