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What is the story about?
Gold prices in India edged lower on Friday (September 26) amid stronger-than-expected US economic data, which boosted the dollar and tempered expectations of further rate cuts this year.
As of today, 24-carat gold is priced at ₹11,488 per gram, 22-carat gold at ₹10,530 per gram, and 18-carat gold (999 gold) at ₹8,616 per gram, according to GoodReturns.
Global benchmark spot gold was down 0.1% at $3,745.67 per ounce, while US December gold futures held steady at $3,774.80 an ounce. The metal remains up 1.6% an ounce so far this week.
Key factors driving prices
Strong US data: Recent US reports showed faster-than-expected economic growth and declining jobless claims. These figures reduced the likelihood of additional rate cuts this year, strengthening the dollar and pressuring gold prices.
Dollar strength: The US dollar index hovered near a three-week high, making gold more expensive for overseas buyers. According to Tim Waterer, Chief Market Analyst at KCM Trade, “The dollar’s return to form stands as a potential obstacle for gold reaching $3,800 an ounce.”
Tariffs and inflation: US President Donald Trump’s new tariffs, effective October 1, could sustain inflation pressures, keeping gold attractive as a safe-haven asset. Investors now await the US Personal Consumption Expenditures (PCE) inflation report, a key indicator for Federal Reserve policy.
Domestic demand: In India, retail demand ahead of Navratri and Diwali continues to support local prices, with premiums remaining high.
Experts highlight that gold remains a strategic investment for risk management.
Investment strategy
Darshan Desai, CEO of Aspect Bullion & Refinery, noted, “Gold is on track for a sixth consecutive weekly gain globally. Any pullback could attract renewed buying interest.”
Sandip Raichura, CEO – Retail Broking & Distribution, PL Capital, emphasised gold’s long-term momentum.
“Gold has begun a very large move which may last several months. Longer-term positions can use dips as a buying opportunity," he said.
Experts recommend maintaining 5–10% allocation in gold as part of a diversified portfolio to hedge against inflation and currency risks.
Harshal Dasani, Business Head, INVasset PMS, said, “Gold continues to rise as central banks expand their reserves and fiat currencies lose purchasing power. It’s less about speculation and more about long-term insurance.”
Outlook
Gold is likely to remain volatile in the near term, driven by US inflation data, dollar movements, and global geopolitical developments.
According to Aksha Kamboj, Vice President, India Bullion & Jewellers Association, domestic demand during festive seasons combined with global macro factors will continue to support prices in the months ahead.
-With Reuters inputs
As of today, 24-carat gold is priced at ₹11,488 per gram, 22-carat gold at ₹10,530 per gram, and 18-carat gold (999 gold) at ₹8,616 per gram, according to GoodReturns.
Global benchmark spot gold was down 0.1% at $3,745.67 per ounce, while US December gold futures held steady at $3,774.80 an ounce. The metal remains up 1.6% an ounce so far this week.
Key factors driving prices
Strong US data: Recent US reports showed faster-than-expected economic growth and declining jobless claims. These figures reduced the likelihood of additional rate cuts this year, strengthening the dollar and pressuring gold prices.
Dollar strength: The US dollar index hovered near a three-week high, making gold more expensive for overseas buyers. According to Tim Waterer, Chief Market Analyst at KCM Trade, “The dollar’s return to form stands as a potential obstacle for gold reaching $3,800 an ounce.”
Tariffs and inflation: US President Donald Trump’s new tariffs, effective October 1, could sustain inflation pressures, keeping gold attractive as a safe-haven asset. Investors now await the US Personal Consumption Expenditures (PCE) inflation report, a key indicator for Federal Reserve policy.
Domestic demand: In India, retail demand ahead of Navratri and Diwali continues to support local prices, with premiums remaining high.
Experts highlight that gold remains a strategic investment for risk management.
Investment strategy
Darshan Desai, CEO of Aspect Bullion & Refinery, noted, “Gold is on track for a sixth consecutive weekly gain globally. Any pullback could attract renewed buying interest.”
Sandip Raichura, CEO – Retail Broking & Distribution, PL Capital, emphasised gold’s long-term momentum.
“Gold has begun a very large move which may last several months. Longer-term positions can use dips as a buying opportunity," he said.
Experts recommend maintaining 5–10% allocation in gold as part of a diversified portfolio to hedge against inflation and currency risks.
Harshal Dasani, Business Head, INVasset PMS, said, “Gold continues to rise as central banks expand their reserves and fiat currencies lose purchasing power. It’s less about speculation and more about long-term insurance.”
Outlook
Gold is likely to remain volatile in the near term, driven by US inflation data, dollar movements, and global geopolitical developments.
According to Aksha Kamboj, Vice President, India Bullion & Jewellers Association, domestic demand during festive seasons combined with global macro factors will continue to support prices in the months ahead.
-With Reuters inputs
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