Gold prices show positive bias amid safe haven demand, trade range-bound this week

Gold prices ended slightly higher this week with positive bias amid safe haven demand. Analysts expect prices to trade between Rs 1,07,500 and Rs 1,11,000, with focus on upcoming US economic data

New Delhi: The Indian bullion prices ended marginally higher this week after slumping from a record high seen on September 16, buoyed by the US Federal Reserve signaling more rate cuts this year

The price of 24-carat gold (10 grams) started the week at Rs 1,09,603 on Monday, rose to a significant high of Rs 1,10,540 on Tuesday, and ended the week at Rs 1,09,873, according to data published by the India Bullion and Jewellers Association (IBJA)

---

“Gold traded range-bound but positive, with gains of 0.38 per cent at $3,657 and 0.26 per cent at Rs 1,09,330, as Fed’s policy supported the recent rate cut while keeping the door open for two more cuts based on incoming data,” said analysts

Prices continue to hold firm, with focus now shifting to next week’s key US data — GDP, Manufacturing and Services PMI, and PCE Price Index — which will guide further trends, they added

Gold is expected to trade in the range between Rs 1,07,500 and Rs 1,11,000, they said

On September 17, the spot prices touched an eye-watering $3,683 per troy ounce—an all-time high, and up 43 per cent this year Meanwhile, in the domestic market, MCX October futures quoted Rs 1,10,138 per 10 grams

With the US labour data showing signs of softening, the Fed’s recent dovish comments have reduced the opportunity cost of holding gold, luring risk-averse investors into bullion

Central banks, particularly in Asia, are stocking up, reducing reliance on the dollar, according to multiple media reports

Risk-averse investors increased their bets on bullion as a result of geopolitical developments, including Middle East tensions and Sino-US trade frictions

Analysts, however, cautioned that the rally may be overextended and reminded investors that gold peaked in 2011 before entering a prolonged decline as speculative inflows reversed

Traders will focus on next week’s US economic releases for insights into the Fed’s direction, while Indian consumers and jewellers keep focus on domestic festive-season demand