Gold and Silver Prices Ease Amid Fed Tightening Signals

Strong U.S. macro data and a firm Federal Reserve stance have weighed on precious‑metal valuations. In Delhi, the IBJA recorded a weekly reduction of 0.64 percent for gold and 1.12 percent for silver.

On August 28, MCX’s October gold contract closed at INR 1,56,281 per 10 grams, reflecting a 1.6 percent decline from the prior trading day and a 3.79 percent fall over the week. Silver’s September contract ended at INR 2,36,704 per kilogram, a 1.7 percent slide intraday and a 4.01 percent weekly dip.

The market reaction followed the release of July’s personal consumption expenditures (PCE) inflation at 3.7 percent and Fed Chair Kevin Warsh’s Jackson Hole speech, both interpreted as cues for prolonged higher rates. Consequently, investors reduced exposure to non‑yielding assets, prompting a pullback in gold and silver.

Forecasts suggest that future price movements will hinge on U.S. inflation trends, Fed policy signals, and global risk sentiment, with technical levels indicating short‑term resistance for gold around $4,600–$4,630 per ounce and support near $4,470–$4,500.