Gold May Remain Stable Despite Market Swings

Gold extended its monthly gains on Friday (August 29) after touching a one-month high of $3,423.16 on Thursday (August 28). Spot gold eased 0.3% to $3,408.26 per ounce due to profit booking, while US December futures fell 0.2% to $3,469

an ounce.

Bullion has risen 3.9% so far this month.

Domestic prices hold

In India, 24 karat gold is ₹10,261 per gram, 22 karat ₹9,406 per gram, and 18 karat (999 gold) ₹7,696 per gram for 10 grams, according to GoodReturns.

Mohit Kamboj, Former National President of IBJA and CEO of Aspect Global Ventures, noted that domestic prices have seen a minor dip, with seasonal and wedding demand providing support.

Dollar decline provides support

The US dollar is set for a monthly drop, making gold

more affordable for holders of other currencies. Tim Waterer, Chief Market Analyst at KCM Trade, said the metal remains attractive ahead of expected looser monetary policy in the US.

Fed rate cut expectations influence demand

Federal Reserve Governor Christopher Waller endorsed a rate cut next month and hinted at further reductions over the next three to six months. Traders assign an 86% probability of a 25-basis-point cut at the Fed’s September meeting, according to the CME FedWatch Tool.

Investors await the US PCE Price Index for guidance on inflation trends.

Insights on near-term trends

Darshan Desai, CEO of Aspect Bullion & Refinery, highlighted that upcoming inflation data could influence Fed decisions, affecting gold’s performance.

He said that a weaker dollar and market uncertainties around the Federal Reserve’s policy decisions are likely to provide support at lower levels.

Outlook

Gold is expectedto trade within a narrow range in the near term, influenced by global economic cues and

domestic buying patterns.

-With Reuters inputs