In India, gold prices stood at ₹10,151 per gram for 24 karat, ₹9,305 per gram for 22 karat, and ₹7,614 per gram for 18 karat (999 gold), according to Goodreturns.
The US dollar index rose 0.2% against major rivals, making bullion more expensive for overseas buyers. Analysts noted near-term support for gold around $3,350 an ounce, with resistance seen in the $3,380–3,400 an ounce range.US Federal Reserve Chair Jerome Powell’s remarks on Friday (August 22) signaled a possible rate cut at the September 17 policy meeting, with markets pricing in an 87% chance of a quarter-point reduction. Lower interest rates typically benefit gold by reducing the opportunity cost of holding the non-yielding asset. Investors now await US personal consumption expenditure (PCE) inflation data due on Friday (August 29).
Rahul Kalantri, VP Commodities at Mehta Equities, said gold and silver rebounded after Powell’s dovish remarks, but inflation concerns and slow economic activity could limit further upside.Darshan Desai, CEO of Aspect Bullion and Refinery, said domestic sentiment may remain firm with the onset of the festive season.
“Markets are likely to continue factoring in the likelihood of a rate cut next month, and any weakness in the US dollar or data reinforcing Fed easing will help support gold prices,” he noted.
Aksha Kamboj, Vice President of India Bullion & Jewellers Association (IBJA), said Indian jewellers are cautiously re-entering the market ahead of festivals. “Prices, though elevated, have spurred renewed buying interest. The fall from the ₹1.02 lakh per 10 grams peak has encouraged traders to build positions,” she said.
Geopolitical concerns, including the ongoing Russia-Ukraine conflict, also provided safe-haven support to bullion. However, analysts caution that inflation trends and US policy signals will remain key drivers in the coming weeks.
-With Reuters inputs
