XAUUSD (Gold) price today: Gold rates rose in the domestic futures market on Friday (August 29) morning, supported by expectations of a 25 bps Fed rate cut in September. However, the dollar’s rise against its peers capped the gains for the yellow metal. MCX Gold October 3 contracts were 0.10 per cent up at ₹1,02,120 per 10 grams around 9:40 AM. MCX Silver September 5 contracts, however, were down 0.10 per cent at ₹1,16,950 per kg at that time.
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US Fed rate cut hopes
Domestic gold prices have risen about 3% in August amid Trump’s tariff-related uncertainties and expectations of Fed rate cuts.
US Fed Chair Jerome Powell signalled in his Jackson Hole speech on August 22 that the central bank may cut rates in its next policy meeting in September.
According to Reuters, “Fed Governor Christopher Waller on Thursday said he would support an interest-rate cut next month and further reductions over the next three to six months.”
According to the CME FedWatch Tool, the market is discounting an 86 per cent chance of a 25-basis-point rate cut in September.
However, the volatility of the dollar index remains a key drag on gold prices. Since the yellow metal is priced in the greenback, a stronger US currency makes gold expensive in other currencies, limiting its demand.
The dollar index rose 0.20 per cent on August 28. This month, it has declined nearly 2 per cent after rising 3 per cent in July.