US-China Summit and Inflation Data in Focus as Markets Await Next Week
The US-China summit and upcoming inflation and growth data will be crucial for markets next week. The most significant event is Xi Jinping's visit to Washington on September 24, his first since 2015. Markets closed a pivotal week with the Federal Reserve delivering its first rate hike in three years.
The Fed raised its policy rate by 25bp to 3.75 percent-4.00 percent, and the median year end 2026 fed funds rate was revised up to 4.1 percent from 3.8 percent in June. Chair Kevin Warsh called inflation 'too high' at his press conference.
The dollar closed above 100 after the Federal Reserve raised its policy rate, and US equities ended mixed. The Dow fell 1.7 percent, while the S&P 500 slipped 0.1 percent. Spot gold closed nearly 1 percent higher at $4,380 an ounce, with silver closing above $66 an ounce.
The overall technical bias in gold remains sideways to bullish, with a sustained move above Rs 1,57,100 likely to strengthen the bullish momentum. LME base metals posted weekly gains due to firmer Chinese demand signals and persistent supply side constraints.