Gold Price Rises as Soft Inflation Data Boosts Fed Expectations

The price of gold settled 0.14% higher at Rs 1,49,036 due to softer-than-expected US inflation data, which reinforced expectations that the Federal Reserve may leave interest rates unchanged in its October meeting.

The headline PCE price index rose 0.3% month-on-month, while core PCE increased 0.2%, indicating relatively moderate inflation pressure.

Goldman Sachs maintained its end-2027 gold forecast at $5,400 per ounce, citing continued central-bank diversification as a key structural driver, although it warned that a more hawkish Fed could temporarily push prices toward $4,070 before recovering toward $4,200 by end-2026.