Gold declines as Fed rate uncertainty weighs on prices
Gold prices dipped 0.71% to ₹149,316 in recent trading, extending a decline despite weaker-than-expected US jobs data. The Federal Reserve’s interest-rate outlook remains uncertain, with Chicago Fed President Austan Goolsbee noting that while labor-market stability is evident, persistent inflation remains a bigger policy concern.
Analysts at HSBC revised their gold price forecasts downward, predicting an average of $4,490 per ounce in 2026 and $4,825 in 2027, citing expectations of further US rate hikes and rising oil prices. In contrast, Goldman Sachs maintained its end-2027 forecast at $5,400, arguing that tighter monetary policy may slow near-term gains but won’t derail long-term rally prospects, supported by central-bank diversification.
South Korea’s central bank plans to begin purchasing domestic gold in December, with around 1 tonne available. The bank held 104.4 tonnes of gold at the end of June, equivalent to 3.1% of its total reserves. Physical demand in Asian markets showed modest improvement, with Indian demand expected to rise ahead of Dussehra and Diwali, and Chinese gold trading at premiums of $5-10 per ounce. London vault holdings rose 0.74% month-on-month to 9,534 tonnes by the end of July, valued at approximately $1.2 trillion.
Technically, gold faces fresh selling pressure, with open interest increasing 2.3% to 16,322 contracts as prices fell ₹1,074. Support is seen at ₹148,385, with a break below targeting ₹147,445. Resistance stands at ₹150,730, and a decisive move above this level could push prices toward ₹152,135.