Quote on Gold Commentary 1st September 2025 by Mr. Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd
Below the Quote on Gold Commentary 1st September 2025 by Mr. Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd
Gold marked an all-time high on Comex as well as on domestic front; Silver too booked records on domestic front and touched the higher since 2011 in COMEX on the back of safe haven buying. Along with increasing rate cut expectations, tensions between Israel and Gaza and other geo-political tensions and the tariff escalations are continuously supporting buying in bullions. as increased expectations of a U.S. Federal Reserve interest rate cut this month lifted bullion's allure. U.S. consumer spending increased solidly in July while underlying inflation picked up as tariffs on imports raised prices of some goods, but that data will probably not prevent the Fed from cutting interest rates this month. After better than expected GDP data, U.S. PCE price index rose 0.2% MoM, and was up 2.6% on a YoY basis, both in line with expectations. Even though the data signals economies resilience, President Trump’s pressure on Fed official is continuously increasing rate cut expectations for the September which is currently at 85%. On trade front, U.S. Trade Representative Jamieson Greer said the Trump administration is continuing its talks with trading partners despite a U.S. appeals court ruling that most of President Donald Trump's tariffs are illegal. Increase in festive and wedding demand, ETF buying and Increased premiums in China are some of the additional factors supporting gold’s bull run.
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