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Experts warn there is no straightforward answer. Gold prices could stay volatile through September, with multiple global events pulling them in different directions
If the Fed cuts rates as expected, gold prices could edge up further. But if tariffs rise or inflation worsens, the Fed may hold off, potentially stabilising prices. (AI-generated image)
As September approaches, investors and buyers in the country are keeping a close watch on gold prices. With major global economic events lined up, especially the US Federal Reserve meeting on September 16-17, the big question is: Will gold get costlier, or are prices likely to cool down?
Gold has always been more than just a metal for Indians. It is a cultural symbol of wealth and security, something families invest in during weddings, festivals, and times of uncertainty. Globally, too, gold is viewed as a safe-haven asset, a fallback when markets turn volatile. So, when its prices fluctuate, it impacts everyone from large-scale investors to middle-class families planning to buy jewellery for Diwali.
Why September Matters For Gold Prices
The US Federal Reserve (Fed) meeting is the key event that traders are keenly watching. Experts say gold prices in the short term will depend on:
- US economic data: Inflation, job growth, and economic recovery numbers.
- Geopolitical factors: The Russia–Ukraine peace talks and global trade tensions.
- Interest rate decisions: Any rate cut or delay by the Fed can directly influence gold prices.
Currently, gold prices (24-carat/ 10 gm) in Mumbai are Rs 1,01,637, Hyderabad around Rs 1,01,510, Delhi Rs 1,01,783, and Bengaluru Rs 1,01,625. But analysts warn this could change quickly based on the Fed’s decisions.
What Experts Are Saying
Pratamesh Mallya, research analyst at Angel One, says there is growing optimism that the Fed will cut interest rates in September, with a second cut likely by the end of the year.
Such rate cuts often weaken the US dollar, making gold cheaper for investors holding other currencies, and this usually pushes gold demand and prices higher.
At the Jackson Hole Symposium, Fed Chair Jerome Powell hinted at the possibility of a rate cut but added a caveat: If US tariffs under the Donald Trump administration push domestic inflation higher, the Fed could delay the cut to avoid worsening price pressures.
Meanwhile, Manav Modi, a precious metals analyst at Motilal Oswal Financial Services, points out that global uncertainty—be it geopolitics or trade tariffs—means gold will continue to attract buyers looking for safety.
The Factors Driving Gold Prices
US Fed Decisions: A rate cut lowers the opportunity cost of holding gold, making it attractive.
Dollar Strength: A weaker dollar usually pushes gold prices higher.
Global Tensions: Wars, trade disputes, and sanctions often drive investors toward safe assets like gold.
Inflation: High inflation generally boosts gold demand as a hedge.
But experts warn there is no straightforward answer. Gold prices could stay volatile through September, with multiple global events pulling them in different directions.
What This Means For Indian Buyers
For Indian households planning to buy gold this festive season, analysts suggest keeping an eye on global cues before making big purchases.
If the Fed cuts rates as expected, gold prices could edge up further. But if tariffs rise or inflation worsens, the Fed may hold off, potentially stabilising prices.
In short, September will be a make-or-break month for gold investors.
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d…Read More
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d… Read More
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