Fed Decision, Crude Oil to Dictate Gold Price Volatility Next Week
The price of gold and silver is expected to remain volatile next week due to several key factors. The US Federal Reserve's interest rate decision, crude oil movements, the US dollar, and developments in the US-Iran conflict will drive market sentiment.
The September 15-16 meeting of the Federal Open Market Committee (FOMC) will be a crucial event for bullion markets. The Fed's policy decision and Chair Kevin Warsh's commentary are likely to set the tone for precious metals.
Jateen Trivedi, VP research analyst at LKP Securities, said that gold will remain highly sensitive to several factors, including Fed commentary, crude oil movements, the US dollar, inflation expectations, and geopolitical developments. He added that any moderation in crude prices or a less hawkish stance by the Fed could support a recovery in gold.
The domestic market showed a mixed trend last week, with gold futures for October delivery edging up Rs 17 to Rs 1,52,784 per 10 grams on the Multi Commodity Exchange. However, silver fell Rs 2,684, or 1.13%, to settle at Rs 2.34 lakh per kilogram.