Domestic gold gains Rs 1,377 on September 25, but remains 2% lower for the week

Fresh updates from the financial markets indicate that Gold briefly advanced above $4,314 per ounce during intraday trading on September 25, but quickly trimmed those upside to trade just above $4,295 during the evening session, up 0.49 percent in 24 hours, though prices stay 1.76 percent down during the past week. US gold futures were trading with a 0.89 percent gain to $4,336.30 per ounce (12:48 GMT) during the past 24 hours.

The domestic spot gold additionally advanced around Rs 1,377 to Rs 1,51,377 per 10 grams on Thursday (18:15 IST) on MCX, while gold futures for the October delivery surged 0.66 percent to Rs 1,51,710 per 10 grams from its previous close.

"Gold remained volatile the current week," stated Jateen Trivedi, VP Research Market observer at LKP Securities, adding that the metal was trading between Rs 1,50,000 and Rs 1,54,400. "Prices declined over 2 percent amid expectations of another Fed interest-rate gain in October. Earnings booking from elevated marks continued, while Rs 1,50,000 remained an important backing."

Commodity market watchers estimate the gold price range to be between Rs 1,47,000 and Rs 1,54,000 per 10 grams in the near term.

"A sustained climb in the Dollar Index above 101 could add further pressure on bullion. Going ahead, Non-Farm Payrolls and Unemployment data will be crucial for the Fed rate outlook," Trivedi stated.

According to PTI, the dollar index was trading 0.18 percent softer at 101.10, while Brent crude futures inched with a 1.08 percent gain to $105.45 per barrel.

The Augmont Bullion report (Sept. 25) noted that crude prices jumped roughly 3 percent to a one-week high after a Houthi missile strike on Saudi Arabia reignited supply-disruption fears amid the US and Iran war.

The market is additionally increasingly pricing in the possibility of another interest-rate gain in October. The climb in US 10-year yield has additionally reinforced the case for further tightening.

Interest-rate traders have boosted the probability of a 375–400 bps target range at the upcoming US The US central bank meeting to 33.6 percent from 31.4 percent a day earlier, according to FedWatch data tracking expectations for changes in the Fed’s policy rate.

The Augmont report estimates that spot gold backing lies in the $4,250–$4,450 (Rs 150,000-Rs 154,000) band. "A sustained move above $4,300 (Rs 151,400) would open the door to buying, with a stop-loss at the softer end of the range and a target at the upper end."