Gold Prices Rebound Slightly Amid Ongoing Global Concerns
Gold prices rebounded slightly on September 28 after a sell-off, but remained under pressure due to ongoing global concerns. Spot gold rose 0.9% to around $4,150 per ounce during the evening session, but is still down 4% in a week and nearly 7% from last month's levels.
The US-Iran conflict and failed talks to reopen the Strait of Hormuz continue to weigh on investor sentiment, with Brent crude futures trading at around $105 per barrel. This has kept India's oil import and inflation risks elevated, causing the rupee to hit a two-month low against the dollar.
Indian domestic spot gold recovered from Monday's close, but remained under pressure due to strong selling in recent days. Analysts expect gold prices to remain volatile, with a range of Rs 1,44,000-1,49,500.
The US Federal Reserve's hawkish tone and higher bond yields have increased expectations of a rate hike, which is weighing on bullion markets. Market participants are pricing in over a 70% probability of the Fed raising its target rate to 400-425 bps in the upcoming monetary policy meeting.