US gold futures for December delivery held steady at $3,418.90 an ounce.
In India, gold prices stood at ₹1.01 lakh per 10 grams for 24 karat and ₹93,040 per 10 grams for 22 karat, according to Goodreturns.The move followed US President Donald Trump’s decision to dismiss Federal Reserve Governor Lisa Cook, citing mortgage borrowing impropriety.
The action unsettled markets and raised questions about the central bank’s independence. The US dollar index slipped 0.2%, making bullion cheaper for overseas buyers.Darshan Desai, CEO of Aspect Bullion and Refinery, said, “Gold prices climbed following US President Donald Trump’s sudden dismissal of Federal Reserve Governor Lisa Cook, prompting a sharp reaction in equity markets and driving investors toward safe-haven assets. The yellow metal is expected to remain supported by growing expectations of a potential Fed rate cut next month, especially if concerns over the central bank’s independence persist and its impact on the US Dollar.”
The market is also assessing recent remarks from Fed Chair Jerome Powell, who signalled that a rate cut could be considered in September, while maintaining caution on inflationary pressures.
Non-yielding gold tends to benefit when interest rates fall, as the opportunity cost of holding the metal declines.
Investor focus now turns to Friday’s (August 29’s) release of the Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation measure, for clarity on the policy path.
Rahul Kalantri, VP Commodities at Mehta Equities, noted that bullion may remain volatile until the inflation data is out. “Gold has support at $3,352–3,335 an ounce while resistance is seen at $3,395–3,410 an ounce. In Indian markets, support is placed at ₹1,00,240–99,850 per 10 grams while resistance stands at ₹1,00,950–1,01,150 per 10 grams,” he said.
–With Reuters inputs
