Bangalore Stock Exchange：Gold prices surge： What’s driving the market and what to expect next

Gold prices surged by ₹86 to ₹72,013 per 10 grams in futures trade on Thursday (September 12). This rise came as speculators built fresh positions amid robust spot demand.

Globally, gold futures saw an increase of 0.21%, trading at $2,547.80 per ounce in New York.Bangalore Stock Exchange

Key factors influencing the gold market

US inflation data

Renisha Chainani, Head Research at Augmont - Gold For All, explained that gold❼recent recovery from $2,500 per ounce is linked to the US Consumer Price Index (CPI) report.

The report revealed that while the headline CPI rose by 0.2% in August, the annual rate fell to 2.5%, the weakest increase since February 2021.Hyderabad Investment

This led investors to lower their expectations of a 50-basis-point interest rate cut by the Federal Reserve.

The CME Group’s FedWatch tool now predicts an 87% likelihood of a 25-basis-point rate drop at the next FOMC meeting on September 17-18.

Chainani noted that if gold surpasses its previous high of $2,530 per ounce, it could reach new highs of $2,550 per ounce (₹73,000 per 10 grams) and $2,600 per ounce (₹75,000 per 10 grams) in the near term.

Market volatility and economic indicators

Rahul Kalantri, VP Commodities at Mehta Equities, said that potential interest rate cuts by the European Central Bank (ECB) could further support precious metal prices.Chennai Stock

Current support levels for gold are $2,495–2,480 per ounce, with resistance at $2,530–2,542 per ounce. In rupee terms, gold has support at ₹71,710–71,550 per 10 grams and resistance at ₹72,100–72,250 per 10 grams.

Impact on Indian marketAhmedabad Investment

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL), said that gold sale will see rise during Diwali and wedding season in India.

He highlighted that while retailers might face some inventory challenges, these are expected to be offset by increased sales and reduced promotional expenses due to heightened demand.

Jinnai Wealth Management