Gold Price Edges Higher on Mild US CPI Data Ahead of Fed Decision

Gold prices in India rose marginally on Friday after Thursday's sharp decline. The 24-karat gold price added ₹16 per gram to reach ₹15,442 as US consumer price data for August came in broadly in line with market expectations.

The mild recovery followed a week of volatility tied to incoming American inflation readings. The Federal Reserve's September 16 rate decision is now fewer than 96 hours away and is the single most important near-term variable.

A 25 basis point hike is priced in at roughly 85%, so if the Fed delivers exactly what markets expect and signals a pause afterward, gold could recover modestly. If the Fed hikes and signals more increases ahead, the downward pressure will resume.