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On Tuesday, September 16, gold prices dipped as the market responded to most investors taking profits ahead of this week's US Federal Reserve policy meeting. Gold prices remained vulnerable to modest selling pressure, but expectations for a rate cut with the dollar's weakness provided a limit to the downside.
On the Multi Commodity Exchange (MCX), October gold futures slipped 0.04% to Rs 1,10,130 per 10 grams. Silver mirrored the trend, with December futures down 0.06% at Rs 1,29,345 per kg. The modest pullback reflected traders squaring off positions after recent gains while awaiting the Fed’s decision on Wednesday.
The US dollar index fell 0.10%, making gold more affordable for overseas buyers and helping to cushion prices despite profit-taking. Analysts said the drop signaled investor caution, as markets broadly expect the Fed to trim rates.
While global futures remain elevated, domestic spot prices in India showed slight weakness. On the MCX, October gold futures traded at Rs 1,09,330 per 10 grams, down 0.40%.
In Mumbai, 24-carat gold slipped to Rs 11,105 per gram, down Rs 1 from the previous day. Ten grams cost Rs 1,11,050 and 100 grams Rs 11,10,500, marking a dip of Rs 100.
The 22-carat gold is at Rs 10,179 per gram, down Rs 1. A 10-gram lot cost Rs 1,01,790, while 100 grams were valued at Rs 10,17,900, both Rs 100 lower.
In Delhi, 24-carat gold stood at Rs 11,120 per gram, down Rs 1 from yesterday’s Rs 11,121. Ten grams are priced at Rs 1,11,200, while 100 grams cost Rs 11,12,000, a decline of Rs 100.
For 22-carat, rates dipped by Rs 1 to Rs 10,194 per gram, with 10 grams priced at Rs 1,01,940 and 100 grams at Rs 10,19,400.
Markets have largely priced in a 25-basis-point cut when the Fed announces its decision on September 17. The move comes as the US labor market shows signs of stress.
Revised data revealed the economy created 911,000 fewer jobs in the 12 months through March than initially estimated. Meanwhile, the unemployment rate rose to 4.3% in August from 4.2% in July, while job additions slowed to 22,000 in August compared with 79,000 the prior month.
These figures have bolstered expectations of Fed easing, strengthening gold’s appeal as a hedge against economic uncertainty.
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Gold’s near-term direction depends on the Fed’s guidance this week. While profit booking has capped prices, weak labor data and a softer dollar continue to lend support. Silver, closely tracking gold, is also expected to remain range-bound until clarity emerges on monetary policy.
