Gold prices steady after US Fed move, festive season to support Indian demand

Gold prices remained largely unchanged on Friday (September 19), with global investors weighing the US Federal Reserve’s latest policy signals and Indian markets edging close to all-time highs.

On the Multi Commodity Exchange (MCX), gold futures for September delivery climbed ₹421 to trade at ₹1.09 lakh per 10 grams in early trade. The October 2025 contract briefly touched an intraday high of ₹1.09 alkh, nearing its all-time peak of ₹1.10 lakh per 10 grams, according to Goodreturns data.

In the spot market, 24-karat gold hovered around ₹1.10 lakh per 10 grams.

Globally, spot gold held at $3,646.23 per ounce as of 0311 GMT, little changed from the previous session. Prices had touched an all-time high high of $3,707.40 an ounce on Wednesday (September 17), before retreating.

US gold futures for December delivery also traded flat at $3,678.90 an ounce.

The Federal Reserve’s 25-basis-point rate cut earlier this week lifted hopes for a sustained easing cycle, but its cautious stance on future policy limited gold’s upside. Fed Chair Jerome Powell described the move as a “risk-management cut” in response to a softening labour market, but warned that sticky inflation could slow the pace of further reductions.

“Sentiment is still bullish but has definitely cooled off a bit. Basically, the Fed didn’t really deliver with the dovish guidance needed for gold to push higher,” said Kyle Rodda, analyst at Capital.com.

He added that weak US data may be required for bullion to retest the $3,700 mark an ounce.

The Fed’s forecast of only one rate cut in 2026 pushed yields and the dollar higher, adding pressure to bullion. Traders, however, are betting on a 92% chance of another 25-basis-point cut at the October meeting, according to CME Group’s FedWatch tool.

Darshan Desai, CEO of Aspect Bullion & Refinery, noted that the pullback may cool an overheated rally, but bargain buying could emerge as domestic demand strengthens with the onset of Navratri.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), pointed out that a modest retracement in Indian prices reflects profit-booking and a slightly firmer rupee reducing import costs.

“Nonetheless, the trend is still up. Demand is supported by festivals, inflationary concerns, and geopolitical insecurity, which maintain gold’s safe-haven appeal,” she said.

Outlook

Analysts expect gold

to remain supported by festive buying in India and global economic uncertainty. Softer prices may offer Indian consumers timely entry points, while global investors continue to track US data for cues on the Fed’s next move.

Any signs of a weaker dollar or sustained inflation could provide the spark for bullion to regain momentum.

-With Reuters inputs