MCX Gold Prices Hold Steady Amid Fed Rate Hike Uncertainty
Gold prices have remained steady near record highs on the Multi Commodity Exchange (MCX) as investors await signals from the Federal Reserve on US interest rates. Domestic gold futures are trading between ₹1,52,800 and ₹1,53,550 per 10 grams, a narrow range that suggests market uncertainty.
The main driver behind this uncertainty is the upcoming decision on interest rates by the Federal Reserve. Recent data showed that the US economy added 162,000 jobs in August, beating market expectations. This has led to speculation that the Fed may keep interest rates higher for longer to control inflation, with markets pricing in a roughly 60% probability of a rate hike.
Gold prices are influenced by interest rates and the US dollar. When US interest rates rise, government bonds become more attractive, potentially pulling investment money away from gold. However, ongoing geopolitical tensions in West Asia have created a floor for gold prices as investors seek safe-haven assets.