Gold Prices Rise Ahead of Fed Policy Decision
Gold demand in India continues to remain strong despite record-high prices. People are shifting from heavy gold buying to smaller investments through gold ETFs, digital gold, and grams instead of pounds.
At the same time, global central banks are boosting their gold reserves, which have now surpassed US gold holdings for the first time in 30 years.
Fed Policy in Focus
The US Federal Reserve’s two-day meeting (Sept 16–17) is expected to decide on a 25 basis point rate cut. This move could trigger fresh momentum in gold prices as investors shift from bonds to bullion.
- Job growth in the US dropped to 22,000 in August from 79,000 in July, pushing unemployment to 4.3%.
- US inflation rose to 2.9% in August, above the Fed’s 2% target.
- According to the CME Fed Watch Tool, there is a 96% chance of a 25 bps cut and only a 4% chance of a 50 bps cut.
Domestic Market Update (Sept 16)
22K Gold: ₹1,02,800 per 10 grams (+₹700)
24K Gold: ₹1,12,150 per 10 grams (+₹770)
Gold Jewellery: ₹89,720 per sovereign (+₹616)
Silver: ₹1,44,000 per kg (+₹1,000)
Platinum: ₹39,600 per 10 grams (–₹180)
On the MCX, October gold futures traded at ₹1,10,244 per 10 grams (+0.06%), while December silver was at ₹1,29,653 per kg (+0.17%).
Expert View
Analysts suggest buying on dips, as gold is likely to climb higher after the Fed decision. Short-term investors may face volatility, but long-term investors in Tamil Nadu and across India can expect steady gains.
