According to a Reuters poll, nearly all economists expect the Federal Reserve to leave interest rates unchanged this month, even as persistent inflation could strengthen the case for a tighter policy response later. Traders are pricing in an 84% probability of rates remaining unchanged next week and a 90% chance of a hike in December, according to CME’s FedWatch Tool. Investors will also watch US Personal Consumption Expenditures (PCE) inflation data, which the central bank closely monitors as it targets 2% inflation.
Domestic bullion prices have also been affected by currency movements. Gold futures on the Multi Commodity Exchange (MCX) fell Rs 3,581, or 2.4%, over the past week to close at Rs 1.47 lakh per 10 grams. Silver futures declined Rs 14,568, or 6.4%, to settle at Rs 2.11 lakh per kilogram. Analysts attributed much of the domestic price pressure to the rupee’s appreciation, which reduced the landed cost of imported gold.
Geopolitical developments and energy prices remain important factors for bullion. Brent crude has been hovering near $110 per barrel amid tensions around the Strait of Hormuz and concerns about regional stability. Higher energy prices could fuel inflation and influence expectations for interest rates, while easing US Treasury yields and a weaker dollar could offer some support to precious metals.
Investors will track Chinese economic data, US housing figures, consumer sentiment, inflation expectations and purchasing managers’ index readings from India, the UK and the US. Developments concerning Russian crude supplies and monetary policy signals from other major central banks will also be watched.
In the international market, silver, platinum and palladium have shown mixed movements. Spot silver was steady at $57.95 per ounce, platinum rose 0.5% to $1,656.10, while palladium was little changed at $1,102.13.
The liveblog will track domestic and international bullion rates, market movements, analyst views and the economic and geopolitical developments shaping gold and silver prices. Commodity markets will remain closed during Tuesday morning’s session on account of Dussehra.
