Gold Market
Commodity markets are volatile as West Asia tensions disrupt supply chains. ICICI Direct's Pankaj Pandey explains the outlook for gold, metals and crude oil, and what it means for stocks.
Gold failed to break above $4,500 and corrected lower, dipping below $4,450 and testing the $4,250 support zone. A bearish trend line at $4,355 is capping near-term gains.
Gold and silver prices rose in domestic markets on Wednesday, with MCX gold futures gaining Rs 1,300 per 10 grams and silver climbing Rs 4,000 per kg ahead of the US Fed decision.
Gold traded around $4,290 an ounce after falling to a five-week low, as Middle East oil disruptions reinforced expectations of a Federal Reserve rate hike this week.
Gold approached a breakout last week but lost momentum, settling back above $4,200. Sticky inflation, rising bond yields, and a Fed rate hike expectation counterbalanced geopolitical oil supply risks.
Gold’s weekly parabolic long trend, confirmed in mid-August, is showing signs of fatigue after three consecutive down weeks. The FOMC meeting and inflation data may decide its fate.
Gold stabilised on Friday after a sharp 2% drop, with traders eyeing US inflation data for clues on the Fed's next move. Key technical support at $4319 is being tested.
Gold prices rose more than 1% on Friday, recovering from recent lows. Strong US inflation data boosted expectations of a Federal Reserve rate hike next week. Indian demand stayed weak while Chinese buying held up.
Gold remains the traditional hedge, but copper and energy markets are gaining structural relevance as demand from electric vehicles, AI, and India's energy needs reshape commodity investment.