Mumbai: Gold prices remained steady on Wednesday as global investors waited for important economic signals from the United States, especially the upcoming Federal Reserve interest rate decision. The expectations of a rate cut have kept the precious metal supported in global markets.
According to recent market data, spot gold traded near 4207 dollars per ounce, while US gold futures showed a slight increase of 0.4 percent. Analysts said that weaker US economic growth and softer comments from Federal Reserve officials have strengthened expectations that interest rates could be reduced soon. Lower interest rates usually make gold more attractive because it does not generate interest like bank deposits or bonds.
Silver also remained a major focus this week after touching a record high of nearly 58.94 dollars per ounce earlier in the session. Although prices cooled slightly, analysts say demand continues to remain strong. Tight supply in London, falling inventories in China and rising industrial demand from sectors such as solar energy and electronics are supporting silver’s upward trend.
In India, both gold and silver prices rose sharply due to global trends and the weakening rupee, which recently crossed 90 against the US dollar. Silver futures in the local market climbed close to 1.84 lakh rupees per kilogram, while gold continued to trade near record highs. Traders say the weaker rupee makes imported precious metals more expensive.
Market experts believe the next major movement in prices will depend on upcoming US data including jobs reports and inflation numbers. If the Federal Reserve confirms a rate cut later this month, both gold and silver could see further gains. However, analysts also warn that any delay or change in the Fed’s tone could lead to short term price volatility.
Many investment banks and financial institutions expect the strong performance of precious metals to continue into next year. Some forecasts suggest that gold may even approach 5000 dollars per ounce in 2026 if economic uncertainty and global demand remain high.
For now, investors and traders are watching the markets closely as the world waits for the Federal Reserve’s next move, which may set the direction for gold and silver in the coming months.