Stories
Gold Rebounds 0.9% After Sell-Off, But Fed Rate Hike Fears Cap Gains
- •Spot gold recovered 0.9 percent to just above $4,150 per ounce, after briefly testing an intraday low of around $4,114 per ounce.
- •US gold futures for December delivery also saw a gain of 0.43 percent, trading at $4,186 per ounce.
- •Domestic spot gold in India recovered to Rs 1,46,933, while MCX gold futures for December delivery peaked at Rs 1,49,600 per 10 grams.
- •Analysts predict gold will remain highly volatile, with a likely trading range between Rs 1,44,000 and Rs 1,49,500.
- •The Fed's hawkish stance and higher US bond yields are increasing expectations of a prolonged high-interest rate cycle, impacting bullion.
Key Questions Answered
Spot gold recovered 0.9 percent to hover above $4,150 per ounce after briefly testing an intraday low of around $4,114. Domestically, the spot gold price recovered to Rs 1,46,933 on September 29, while MCX gold futures for December delivery peaked at Rs 1,49,600 before easing to Rs 1,49,424.
Gold prices remain under pressure due to the US Federal Reserve's hawkish tone, higher US bond yields, and expectations of a higher-for-longer rate cycle. Additionally, rising Brent crude futures driven by ongoing US-Iran conflict tensions and a weakened rupee have kept India's oil import and inflation risks elevated.
Market participants are tracking US CB consumer confidence, JOLTS job openings, crude inventories, and remarks from Fed official Waller. Other key monitorables include crude prices, the rupee, global yields, and the US response regarding the Strait of Hormuz.
