Gold prices are not expecting much gain in the upcoming quarter, as anticipated by experts. Additionally, the gold markets globally can face a real test in the next week. The upcoming week is going to be a busy data week, as US durable goods orders, GDP Q2 report, and Personal Consumption Expenditures (PCE) price index will be published. The PCE price index is preferred by the US Fed to measure inflation, and this will again influence US Federal Reserve Chair Jerome Powell to decide the tapering timeline, before their next November meeting.
OANDA senior market analyst Edward Moya commented, "The $1,700 level held up for all of this year, except for a brief moment when it dropped towards $1,680 a few times but managed to quickly recover." Analysts are also thinking, "This will be critical for the precious metal, which has stayed largely above that level for all of 2021". Gold prices are now staying around $1750, approximately, and lost the $1800 levels. Indian gold rates depend on international markets as the country exports gold from foreign markets. So, Indian gold investors are looking forward to international gold prices for the next week.
Today, on September 25, Saturday in India, 22 carat gold price is quoted at Rs. 45,240 and 24 carat gold is quoted at Rs. 46,240 per 10 grams, same as yesterday. The Comex gold future gained by 0.11% at $1751, while the spot gold market gained by 0.42% at $1751/oz, till last traded yesterday, on Friday. On the other hand, the US dollar index in the spot market did not drop today. But in India, the Mumbai MCX gold in October future fell by 0.13% at Rs. 45995/10 grams till last traded yesterday.
In the upcoming week, the focus of international investors might shift to the debt ceiling debate. The US Treasury Secretary Janet Yellen and Fed Chair Powell are also quite concerned with this matter. Along with this, the progress around the infrastructure package will also be another lookout. At present, gold rates in the international markets are quite subdued because of an anticipation of gradual tapering by the US Fed at the end of this year, as Chair Powell indicated recently. Tapering will influence investors towards government bonds rather than gold. Hence, this will again pull down gold rates globally. In India, a similar gold price trend will be followed.
Gold rates in different Indian cities are quoted differently, daily. Today's gold rates in major Indian cities follow:
|City||22 carat (INR/10 Grams)||24 carat (INR/10 Grams)|
A report noted, "The current trading pattern sees gold first rallying on some new risk event but then giving up all of its gains as tensions ease." Edward Moya added, "If Treasury yields continue to move higher, that has been kryptonite for gold." However, the gold market in the next week will show a pathway for the future price trend, as investors are now looking forward to the US tapering timeline.