India Bullion
Gold largely flat as mkt awaits Fed interest rate decision
This story was originally published at 21:09 IST on 30 July 2025
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By Afra Abubacker
NEW DELHI – Futures contracts of gold and silver were largely flat Wednesday as traders awaited the US Federal Reserve's decision on interest rates, due later in the day. However, a firm dollar and easing global trade tensions exerted some downward pressure on gold prices.
GOLD prices moved just a little as the market's risk appetite has improved amid the continuing tariff truce talks between the US and China. Easing geopolitical tensions dim the appeal of gold, which is considered a safe-haven asset.
"Investors in the precious metal appear to be waiting for a catalyst to signal whether prices will head to fresh highs or slide further," Dow Jones quoted Trade Nation's David Morrison as saying. Lower interest rates increase the appeal of the non-interest-yielding precious metal.
US President Donald Trump's tariff policies have stoked inflation fears, further complicating the Fed's path to lower interest rates. Markets will be paying attention to Fed Chair Jerome Powell's remarks for more cues on the interest rate trajectory.
"While the Fed is widely expected to keep rates unchanged, markets are closely watching for guidance on the policy outlook, especially amid intense political pressure and mixed economic signals," Kotak Securities said.
The US economy expanded at an annual rate of 3.0% in the second quarter, higher than 2.3% growth polled by economists at The Wall Street Journal. Strong GDP growth likely "puts to bed the possibility of a rate cut from the Federal Reserve", Dow Jones quoted Wealth Club's Isaac Stell as saying in a note.
"If the tariff impact on inflation is short-lived and the labor market continues to loosen, we expect the Fed to resume cuts in September and December," Dow Jones quoted Goldman Sachs Asset Management as saying in a note.
SILVER prices were also largely flat on the MCX, tracking those on COMEX and taking a cue from gold. All eyes of investors are on the Fed's upcoming policy decision for clues to a potential rate cut in September.
At 1922 IST, the most-active December gold contract on COMEX was largely flat at $3,356 per ounce. The most-active October gold contract on the MCX was flat at INR 99,140 per 10 grams. At 1922 IST, the most-active September silver contract on the MCX was largely flat at INR 112,834 per kg. The same-month contract on COMEX was flat at $37.72 per ounce. End
US$1 = INR 87.42
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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