Gold Prices Seen Range-Bound with Bullish Bias in September

Gold prices are likely to trade in a broad range with a positive bias in September, according to estimates from nine broking firms polled by Informist. The median estimate for the most active October gold futures contract on the Multi Commodity Exchange of India is INR 148,000-INR 158,000 per 10 grams, while COMEX gold is seen in the range of $4,280-$4,700 per ounce during the month.

The bullish bias comes despite a sharp correction at the end of August when gold came under pressure as expectations of higher US interest rates pushed Treasury yields higher. Some analysts expect the Fed to keep interest rates unchanged in the near term, which could provide support for gold prices.

Safe-haven demand is expected to provide a floor to prices due to renewed escalation in the war in West Asia and continued buying by central banks. Central bank demand has been highlighted as a key support for gold, with China buying 20 tonnes of gold in July, its largest monthly purchase since late 2023.