Gold Treads Lightly, Eyes on US Rates, Inflation and PMI

Published on Sep 18, 2023 14:49

Gold prices have inched up to $1,950 per ounce, marking a three-session winning streak as investors eagerly await key central bank events. While the upcoming US Federal Reserve meeting is expected to keep interest rates unchanged, the focus is on the Fed`s stance regarding inflation and potential policy adjustments. Economic indicators such as S&P Global PMI data and housing statistics are closely monitored for their impact on gold prices and overall market sentiment. The monetary policy decisions of the Bank of England and the Bank of Japan hold significance, potentially influencing the attractiveness of gold as a safe-haven asset. Furthermore, the Reserve Bank of Australia`s release of September meeting minutes will offer insights into future policy directions. After the European Central Bank`s recent record-high rate hike of 4%, global markets are adjusting to a new outlook for rate hikes. Although the Fed is not anticipated to raise rates in the upcoming meeting, Chairman Jerome Powell`s statements during the news conference will be closely scrutinized for indications about the Fed`s plans for the remainder of the year, especially with two more policy meetings scheduled for November and December. In the futures market, gold`s most-active December contract on New York`s Comex was trading at approximately $1,947.20 an ounce, and MCX October gold futures were trading above Rs 59,000, currently at Rs 59,110 per 10 grams.