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Gold Prices Fluctuate Amid Shifting Economic Factors
25 Aug
Summary
- Gold prices dip slightly as dollar index rises
- Expectations of September rate cut by Fed support gold
- Domestic factors like weaker rupee and GST reduction also impact prices
On August 25th, 2025, gold prices experienced a slight dip in the global markets, taking cues from a higher US dollar index. The greenback rose on hopes of a September rate cut by the US Federal Reserve, following a dovish pivot by Fed Chair Jerome Powell at the Jackson Hole symposium last week.
While a stronger dollar typically works against the cause of bullion, the expectation of a rate cut is seen as a positive for the non-yielding gold. On the domestic front, MCX Gold October futures were trading around Rs 1,00,306 per 10 grams, down by 0.08% from the previous session.
Analysts noted that gold ended the previous week on a positive note, recovering from recent declines as Powell's speech reinforced expectations of a September rate cut. This had sparked broad-based dollar weakness and triggered fresh buying across commodities, with gold emerging as a key beneficiary.
Looking ahead, the focus this week will be on key US economic data, including GDP numbers and the Core PCE Price Index, which will provide critical cues on inflation and growth outlook. Domestically, a weaker rupee against the US dollar is expected to support gold prices in India, while sentiment may also be cushioned by expectations of a GST reduction before the upcoming Diwali festival.
