Quote on Gold Commentary 17th September 2025 by Mr. Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd
Below the Quote on Gold Commentary 17th September 2025 by Mr. Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd
Gold prices hovered near all-time highs as expectations for a Federal Reserve interest rate cut later in the day dented the dollar and U.S. bond yields, boosting demand for the precious metal.
Dollar index languished to two months low against its major crosses, below 97 while, US 10Y Yield also witnessed some pressure hovering around 4% mark. On data front, U.S. retail sales and Industrial production was reported better than expected in the yesterday’s session, but a weakening labor market and rising prices amidst tariffs pose a downside risk to continued strength in spending.
All eyes today will be on Federal Reserve’s policy meeting scheduled later tonight, where a much-awaited rate cut could be announced of 25 bps. Along with that, comments from Governor Powell, dot plot and economic forecasts will also be under radar, possibly triggering volatility in market. U.S. President Trump called for Fed Chair Powell to enact a "bigger" cut to benchmark interest rates via social media post.
Meanwhile, 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. Updates regarding US and China meet are showing some optimism regarding possible first steps taken towards trade deal between the two. Along with Fed meet, BOE and BOJ policy meeting this week will also be under radar
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