Gold prices ease to ₹1.12 lakh per 10 grams in India ahead of US inflation data

Gold prices in India fell by ₹125 to ₹1.12 lakh per 10 grams on Thursday (September 25), as traders remained cautious ahead of major US inflation data. The October contract on the Multi Commodity Exchange (MCX) declined 0.11% in a turnover of 6,314 lots, while December futures dropped ₹147 to ₹1.13 lakh per 10 grams in 11,823 lots.

Global trends and market drivers

Internationally, gold traded near $3,768 per ounce.

Analysts said expectations of two potential US rate cuts this year limited the dollar’s rally, lending some support to bullion.

“US macroeconomic data added complexity. August’s new-home sales surged unexpectedly, easing recession fears and clouding expectations for additional Fed easing,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

He noted that gold’s safe-haven demand

remains elevated amid geopolitical tensions, including the Russia-Ukraine conflict and unrest in the Middle East.

Fed Chair Jerome Powell recently signaled caution, balancing persistent inflation with a slowing labor market. While some policymakers advocate two further rate cuts this year, others prefer a slower or more aggressive pace, keeping gold prices contained.

Investor focus and outlook

Investors are now eyeing US macroeconomic releases, including the final Q2 GDP, weekly jobless claims, durable goods orders, and Friday’s Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred inflation gauge.

Statements from Federal Open Market Committee (FOMC) members will also influence market direction.

Rahul Kalantri, VP Commodities at Mehta Equities, said gold has support at ₹1.116 lakh–1.113 lakh per 10 grams.

Experts noted that subdued dollar strength, a weaker rupee, persistent central bank purchases, strong ETF inflows, and safe-haven buying continue to underpin precious metals, even as short-term price movements remain sensitive to US economic data.