Gold prices remained calm at the start of the day on Wednesday, but picked up pace by the afternoon. While there was no significant movement in prices during the initial trading hours, momentum gathered after noon. This surge is attributed to ongoing developments in international markets and expectations related to the US Federal Reserve policy.
Impact of US Fed Policy on the Market
Investors are currently focused on the meeting of the US Federal Reserve, the central bank. This two-day meeting is considered crucial for investors, as it may provide signals regarding future interest rates. It is currently anticipated that the Fed will not make any changes to the existing interest rates but may indicate rate cuts in the future.
In light of the Fed's potential policy, investors are currently avoiding making any major decisions. This is also affecting gold prices.
Gold Also Affected by Stability in US Dollar
Meanwhile, the US dollar index also stabilized after reaching a one-month high on Tuesday. The movement of the dollar is also one of the crucial factors affecting gold prices. When the dollar is b, demand for gold decreases, putting downward pressure on prices. However, when the dollar is stable or weakens, investment in gold increases.
Trump's Threat and Global Tensions Increase Pressure
Activity has also intensified in American politics. President Donald Trump, taking a tough stance against Russia, has warned that if Russia does not take any initiative to end the Ukraine war, new tariffs and other sanctions will be imposed on Russia within 10 days. This statement has also created a stir in global markets, causing the demand for gold to increase once again as a safe investment.
IMF Report Indicates Economic Outlook
The International Monetary Fund (IMF) on Tuesday slightly improved its global growth rate forecast for 2025 and 2026. The report stated that changes in US tariff policy and b consumer purchases have helped to stabilize the global economy. This report has provided some relief to the markets, but investor caution remains.
Agreement on Tariff Issue Between US and China
After two days of talks in Stockholm between the US and China, an agreement was reached to extend the 90-day tariff ceasefire. However, the US side has also clarified that the final decision will be made by President Trump. If he decides to raise tariffs after August 12, the trade environment may become tense again, which will also affect gold prices.
Today's Gold and Silver Prices
On Wednesday, spot gold in the international market reached $3329.19 per ounce. Meanwhile, the price of gold on COMEX increased by 0.13 percent to $3328.40 per ounce. As for silver, spot silver remained stable at $38.20 per ounce, while silver on COMEX increased by 0.06 percent to $38.31 per ounce.
The price of platinum fell by 0.4 percent and closed at $1389.20. The price of palladium remained unchanged and stable at $1258.75 per ounce.
Impact on Domestic Market Too
The movement in the international market has also affected the bullion market in India. On Wednesday, a slight increase in gold prices was recorded in India. In major cities like Delhi, Mumbai, Kolkata, and Chennai, the price of gold increased by ₹200 to ₹300 per 10 grams. Silver also saw an increase of about ₹100 per kg.
Investors' Cautious Watch
Currently, investors appear to be fully cautious. They are keeping an eye on the Federal Reserve's policy, Trump's comments on Russia, and the trade equations between the US and China. All these developments are directly affecting the trend of gold. The outcome of the Fed meeting and global events will determine the course of gold in the coming days.
