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Gold Prices Inch Up Amidst Fed Rate Hike Fears
26 Sep
Summary
- Gold prices rose slightly as the US dollar and Treasury yields climbed.
- Federal Reserve officials signaled continued commitment to high interest rates.
- Technical analysis suggests a bearish near-term outlook for gold.
Gold futures on MCX saw a minor uptick on September 25, reversing some of the recent declines attributed to a strengthening US dollar and rising Treasury yields. October gold futures rose 0.14%, reaching Rs. 1,50,914 per 10 grams.
However, the precious metal faces headwinds as US Federal Reserve officials continue to signal a commitment to maintaining higher interest rates to combat inflation. Philadelphia Fed President Anna Paulson emphasized returning inflation to 2% as a top priority, while New York Fed President John Williams also indicated tighter monetary policy is forthcoming.
Technical analysis suggests a bearish near-term outlook for gold. Key levels to watch include resistance around USD 4,410 and USD 4,417, converging with the 200-period Simple Moving Average. A break below USD 4,230 could lead to further losses towards USD 4,105 and potentially USD 3,945.
