Gold Prices Stable Near Records Amid Fed Policy Uncertainty

Domestic gold futures are trading near record highs around ₹1,53,000 per 10 grams as investors await signals on US interest rates. The market remains cautious due to uncertainty over the path of US monetary policy.

The recent strong US job growth has led many to believe that the Federal Reserve may keep interest rates higher for longer to control inflation. Markets are pricing in a roughly 60% probability of a rate hike in the near term, which could pull investment money away from gold and toward bonds.

However, ongoing geopolitical tensions in West Asia are serving as a protective floor for gold prices, preventing them from falling sharply. The upcoming releases of the US Producer Price Index (PPI) and Consumer Price Index (CPI) will provide crucial data for the Federal Reserve's next policy move.