Dollar, Crude Oil Fluctuations Drive Gold Prices Amid Volatility

Gold prices have stabilized near $4,339 per ounce in the evening session on September 22. However, they remain more than 7% down from their August peak of $4,658 per ounce.

The US Federal Reserve's decision to raise its policy rate to 4% has limited gold's upside, with currency, oil, and monetary policy forces pulling the precious metal in opposite directions.

Ruchit Thakur, Market Analyst at VT Markets, notes that a weak dollar, higher crude oil prices, and geopolitical risks can drive gold prices. However, he also suggests that a weaker rupee may cushion local gold prices even when international prices soften.