MCX Gold August futures were trading at ₹1.41 lakh per 10 grams, up a marginal 0.01%, while MCX Silver September futures fell 0.65% to ₹2.16 lakh per kg.
Domestic bullion prices tracked gains in global markets, where gold held above the $4,080-an-ounce mark after the Fed kept rates unchanged but provided little clarity on the timing of its next policy move.
Investors are now awaiting the US Personal Consumption Expenditures (PCE) inflation data, the central bank’s preferred inflation gauge, for fresh cues on the interest rate outlook.
Analysts said gold is drawing support from safe-haven demand as geopolitical tensions in the West Asia persist. At the same time, the Fed’s commitment to bringing inflation back to its 2% target and the strength in the US dollar are limiting further upside in bullion prices.
Darshan Desai, CEO of Aspect Bullion & Refinery, said global gold and silver markets remain steady, driven by the Fed’s latest policy decision, geopolitical developments in the West Asia and the stronger dollar.
For Indian investors, he said, the current environment points to a relatively stable market, with gold continuing to serve as a wealth preservation asset while silver benefits from both investment and industrial demand.
Ruchit Thakur, Market Analyst at VT Markets, said the Fed’s decision to keep rates unchanged has increased uncertainty over the future policy path. While markets have pared expectations of an immediate rate hike, bullion prices remain highly sensitive to incoming inflation and economic data.
Colin Shah, Managing Director of Kama Jewelry, said gold’s resilience around $4,080 an ounce reflects the market balancing two competing forces, a hawkish Federal Reserve and rising geopolitical risks. While the Fed’s inflation stance creates a challenging near-term backdrop for bullion, renewed global uncertainty could continue to support safe-haven demand, he said.
For Indian markets, the focus is now shifting to the festive and wedding season.
Analysts said the Reserve Bank of India’s monetary policy decision next week, the Fed’s September meeting and global developments will be key factors influencing gold prices and jewellery demand in the coming months.
Despite elevated prices, investment demand for gold has remained resilient.
According to the World Gold Council, India’s gold demand fell 6% year-on-year to 131.4 tonnes in the April-June quarter due to higher customs duty, seasonally weak demand and elevated prices.
However, bar and coin demand rose 9%, while gold ETFs continued to attract inflows, reflecting sustained investor interest in the precious metal amid global uncertainty.
