What is the story about?
Gold prices remained stable on Thursday, August 28, as traders awaited US economic data expected later this week, which could provide clarity on the Federal Reserve’s interest rate path.
Spot
gold traded at $3,390.27 per ounce as of 0257 GMT, after briefly touching its highest level since August 11 earlier in the session. US gold futures for December delivery stood flat at $3,447.40 an ounce.
In India, gold prices were at ₹1.02 lakh per 10 grams for 24 karat, ₹94,050 per 10 grams for 22 karat, and ₹76,950 per 10 grams for 18 karat, according to Goodreturns.
Key factors influencing gold
Fed policy expectations
Investor focus is on the US Personal Consumption Expenditures (PCE) Price Index due
Friday (August 29), the Fed’s preferred inflation gauge.
Economists expect a 2.6% rise in July, matching the previous month. With the CME FedWatch Tool showing an 88% probability of a 25-basis-point rate cut in September, traders are looking for signals that could push gold above the $3,400 mark.
Kyle Rodda, analyst at Capital.com, said, “We’re really looking for something more to push the price above the critical level of $3,400 … the US PCE data will be super significant. We are still bullish on gold.”
Currency and safe-haven flows
A weaker US dollar has lent support to bullion, while the rupee’s slide to record lows against the greenback has put upward pressure on domestic gold prices.
Rahul Kalantri, VP Commodities at Mehta Equities, noted, “Gold has support at $3,365–3,345 an ounce and resistance at $3,412–3,434 an ounce."
Geopolitical and macro backdrop
Concerns over global trade tariffs and geopolitical tensions have sustained demand for gold as a hedge. Market participants remain cautious, awaiting not
just inflation data but also US employment figures to gauge broader economic health.
Fed commentary and outlook
At the Jackson Hole Symposium, Fed Chair Jerome Powell indicated that a rate cut as early as September remains on the table, though dependent on upcoming data.
Rick Kanda, Managing Director of The Gold Bullion Company, said, “Powell’s comments caused gold to jump nearly 1%, reassuming an upward trend. But there is no guarantee—if inflation rises again or the Fed backs off, gold prices could fall.”
-With Reuters inputs
Spot
In India, gold prices were at ₹1.02 lakh per 10 grams for 24 karat, ₹94,050 per 10 grams for 22 karat, and ₹76,950 per 10 grams for 18 karat, according to Goodreturns.
Key factors influencing gold
Fed policy expectations
Investor focus is on the US Personal Consumption Expenditures (PCE) Price Index due
Economists expect a 2.6% rise in July, matching the previous month. With the CME FedWatch Tool showing an 88% probability of a 25-basis-point rate cut in September, traders are looking for signals that could push gold above the $3,400 mark.
Kyle Rodda, analyst at Capital.com, said, “We’re really looking for something more to push the price above the critical level of $3,400 … the US PCE data will be super significant. We are still bullish on gold.”
Currency and safe-haven flows
A weaker US dollar has lent support to bullion, while the rupee’s slide to record lows against the greenback has put upward pressure on domestic gold prices.
Rahul Kalantri, VP Commodities at Mehta Equities, noted, “Gold has support at $3,365–3,345 an ounce and resistance at $3,412–3,434 an ounce."
Geopolitical and macro backdrop
Concerns over global trade tariffs and geopolitical tensions have sustained demand for gold as a hedge. Market participants remain cautious, awaiting not
Fed commentary and outlook
At the Jackson Hole Symposium, Fed Chair Jerome Powell indicated that a rate cut as early as September remains on the table, though dependent on upcoming data.
Rick Kanda, Managing Director of The Gold Bullion Company, said, “Powell’s comments caused gold to jump nearly 1%, reassuming an upward trend. But there is no guarantee—if inflation rises again or the Fed backs off, gold prices could fall.”
-With Reuters inputs
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