Gold Market Report

Advisory Bazaar Info Services

Gold prices followed a volatile pattern this week, declining initially before recovering later. Continued gold purchases by China and other global central banks, a weaker US dollar, and growing concerns over US fiscal sustainability are providing structural support to gold.

However, stronger-than-expected US employment data, rising Treasury yields, elevated crude oil prices and uncertainty over the Federal Reserve’s September policy decision are limiting the upside.

Going forward, market direction will be influenced by US CPI and PPI data, the September 15–16 FOMC meeting and developments in US-Iran tensions. The long-term fundamental outlook for gold remains supportive, while near-term volatility and range-bound trade are likely to persist.