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Below the Quote on Gold Commentary 16th September 2025 by Mr. Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd

Gold prices scaled a record peak, supported by a weaker dollar and US Yields ahead of the Federal Reserve's policy meeting this week, where the central bank is widely expected to cut borrowing rates.

Dollar traded near a 2-1/2-month low against the euro; US Yields also slumped in yesterday’s session hovering around 4%. Market participants are awaiting Governor Powell’s decision and remarks in this week’s policy meeting and a 25bps rate cut is expected after a long pause. In this week’s policy meeting, along with Governor Powe’s statement, dot plot and economic forecasts will also be important to watch for.   U.S. President Trump called for Fed Chair Powell to enact a "bigger" cut to benchmark interest rates via social media post.

Meanwhile on Monday, a U.S. appeals court refused to allow Donald Trump to fire Fed Governor Lisa Cook - the latest step in a legal battle that threatens the Fed's longstanding independence. Adding to the risk profile of Middle Eastern oil supply, the Israeli military launched a ground offensive to occupy Gaza City.

U.S. Treasury Secretary Scott Bessent said the government would not impose additional tariffs on Chinese goods to encourage China to halt purchases of Russian oil unless European countries hit China and India with steep duties of their own. Focus today will be on US Retail sales and Industrial production data.

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