Gold price prediction: Gold rate outlook for September by analysts is out now. Here's what to expect

Gold price's near-term outlook depends on a combination of incoming US economic data, progress in Russia-Ukraine talks and clarity on trade tariffs. Gold rate is likely to remain in a consolidation phase in the near term, but the overall bias will continue to stay positive amid heightened expectations of a US Federal Reserve rate cut in its September policy meeting, analysts said. Gold rate was up by 1.09 per cent to $3,418.50. In the international market, the most traded Comex gold futures for December delivery rose 1.09 per cent on Saturday to settle at USD 3,418.50 per ounce, reflecting renewed optimism among investors after Powell's remarks. The gains came on strong buying interest after Federal Reserve Chair Powell signalled a possible shift in monetary policy at the Jackson Hole symposium, hinting that the central bank may soon cut interest rates for the first time since December. The upcoming US Fed's FOMC meeting is set to happen on September 16-17.

Powell also said that Fed officials could still consider delaying a rate cut to later this year if the tariffs imposed by US President Donald Trump somehow manage to have a pronounced effect on domestic prices.

According to Prathamesh Mallya, DVP - Research, Non-Agri Commodities and Currencies, Angel One said gold prices had been correcting in recent weeks due to a lack of fresh triggers, but Powell's statement provided a fresh boost.


"The chances of a September rate cut and a further cut later in the year are now significantly higher. This allowed for a sharp move in MCX gold as traders looked to benefit from cheaper prices after the dollar weakened," Mallya said. Mallya observed that uncertainty continues to linger in global markets. Mallya said, "Russia-Ukraine peace discussion is on the table, although there are many ifs and buts for an actual settlement of the conflict. The tariff situation also appears never-ending during Trump's term."

Manav Modi, Analyst - Precious Metals, Motilal Oswal Financial Services, said gold started last week on a weak note as easing geopolitical tensions and shifting monetary policy expectations influenced sentiment.

"Some easing was sparked by news that US tariffs on Swiss gold were reversed after the White House clarified the reports were false, leading to a retreat in prices.

"Domestically, the rupee volatility and a stronger dollar capped gold's upside initially, while softer Chinese inflation data dragged industrial metals lower," Manav Modi said.

FAQs

Q1. What are current gold prices?
A1. Gold rate was up by 1.09 per cent to $3,418.50.

Q2. When is US Fed meeting?
A2. The upcoming US Fed's FOMC meeting is set to happen on September 16-17.