Gold prices dip as Fed slows rate cuts

New Delhi

Gold prices fell on Friday after the US Federal Reserve decided to keep interest rates unchanged and signalled that future rate cuts will happen more slowly than earlier expected. Analysts said the Fed's cautious stance has reduced investor demand for gold.

US Fed Chair Jerome Powell said inflation may rise in the coming months due to tariffs and other factors. While markets first responded positively, Powell made it clear that the Fed would wait for more data before making decisions. He mentioned that September’s meeting could be important, but traders have already been expecting limited action.

Currently, the Fed plans to cut rates by 50 basis points in 2025, and by only 25 basis points in both 2026 and 2027. Powell stressed that these projections could change based on how inflation behaves.

Adding to market uncertainty, former US President Donald Trump suggested a meeting with Iran to discuss the Israel-Iran conflict, and Russian President Vladimir Putin expressed interest in peace talks with Ukraine. These developments kept investors cautious.

Meanwhile, lower-than-expected US jobless claims added pressure on gold prices. With US markets shut for a public holiday, price movement was also limited.

According to experts, gold and silver prices dropped close to one-week lows, marking their first weekly loss in three weeks. Silver slipped below $35.70 per ounce, as some investors sold bullion to cover losses in other assets.

In India, gold has support at ₹98,750 and resistance at ₹99,740. Silver has support at ₹105,500 and resistance near ₹1,09,000. A weaker rupee continues to support domestic prices, but global trends remain uncertain.