Fed Hawkishness Pushes Gold Prices Down 0.25% on Indian Markets

Gold prices eased on Wednesday after Federal Reserve policymakers signaled that interest rates may remain higher for longer. Kedia Advisory reported that gold settled down 0.25% at ₹1,52,716 due to hawkish signals from Fed officials.

The Fed raised interest rates by 25 basis points last week, and some policymakers indicated further tightening may be necessary to contain inflation. Market expectations for a December rate hike increased to 90%, up from 80% the previous week.

Despite these monetary policy headwinds, gold continues to receive support from central-bank buying and geopolitical uncertainty. Goldman Sachs retained its end-2027 gold forecast at $5,400 per ounce, noting that tighter policy may slow the rally rather than derail it in the long term.