On Friday, gold prices saw a decline, based on the data gathered by FXStreet.
The price for gold now stands at 9,359.91 Indian Rs (INR) per gram, which is lower than Thursday’s price of 9,386.46 INR.
The value per TOLA has dropped to 109,172.20, compared to 109,481.90 the previous day.
| Unit Measure | INR gold prices |
|---|---|
| 1 gram | 9,359.91 |
| 10 grams | 93,602.31 |
| Tola | 109,172.20 |
| Troy ounce | 291,124.70 |
Market Update: Gold Prices Decline as Fed Rate Cut Expectations Decrease
Traders have shifted their strategies, stepping back from expectations for a more aggressive easing of US Federal Reserve policies after last week’s strong US Producer Price Index (PPI) report. Kansas City Fed President Jeffrey Schmidt characterized the current monetary policy as “conservatively restrictive,” expressing caution about interest rate cuts in September.
Meanwhile, Cleveland Fed President Beth Hammack emphasized the need for slightly restrictive policies to combat rising inflation, citing concerns that inflation remains high and is trending in the wrong direction. This situation has contributed to maintaining the US dollar’s gains since August 6, pressuring gold prices further.
In an interview with Bloomberg, Chicago Fed President Austan Goolsbee mentioned that the latest inflation data gives him pause regarding potential interest rate cuts. However, he indicated a willingness to keep the September policy meeting open for potential actions. Boston Fed President Susan Collins also hinted at the possibility of rate cuts soon due to weak employment figures and the risks posed by rising tariffs.
The CME Group’s FedWatch tool currently indicates a 75% probability that the Fed will lower borrowing costs in September, with expectations of a rate cut of at least 25 basis points by the year’s end. This belief was reinforced by Thursday’s data showing that unemployment claims surged the highest in nearly four years.
As a result, investors are likely to pay close attention to Fed Chairman Jerome Powell’s remarks at the Jackson Hole Symposium for insights into future rate cut plans. Such developments will significantly influence the short-term dynamics of the US dollar and, in turn, gold prices.
Gold pricing in India is calculated by adjusting international prices (USD/INR) to local currency and measurement units. These prices reflect daily market rates as of publication but may vary slightly based on local conditions.
