Fed Decision, Crude Oil to Drive Gold Prices Next Week

The upcoming meeting of the Federal Open Market Committee (FOMC) on September 15-16 will be crucial for gold and silver markets. The US Federal Reserve's interest rate decision and Chair Kevin Warsh's commentary are expected to set the tone for precious metals.

Analysts predict that gold prices will remain volatile due to various factors, including crude oil movements, the US dollar, inflation expectations, and geopolitical developments. According to Jateen Trivedi, VP research analyst at LKP Securities, 'any moderation in crude prices or a less hawkish stance by the US Federal Reserve could support a recovery in gold, while renewed strength in crude oil or a hawkish policy signal may trigger fresh selling.'

The domestic market showed mixed trends last week. Gold futures for October delivery edged up Rs 17 to Rs 1,52,784 per 10 grams on the Multi Commodity Exchange, while silver fell Rs 2,684, or 1.13%, to settle at Rs 2.34 lakh per kilogram.

Investors will also track monetary policy decisions from the Bank of England and Bank of Japan following the Fed. All three central banks are expected to raise interest rates by 25 basis points. Inflation data from various countries, including India, Germany, the UK, the eurozone, the US, and Japan, will also be closely watched.