Gold price prediction today: Gold prices will be in focus with the US Federal Reserve expected to cut rates this week, says Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd. He shares the outlook on gold prices and strategy for gold investors:Gold prices took a breather last week after touching all-time highs on both Comex and the domestic front earlier in the week, supported by a mix of weak US economic data, rising geopolitical tensions, and rupee depreciation. Despite a steady dollar index, US Treasury yields slipped to a five-month low as soft labor market indicators — including sharply lower non-farm payrolls, a downward revision of 911,000 jobs, and rising weekly jobless claims — reinforced expectations of monetary easing. Inflation data remained mixed, with US CPI rising 0.4% in August, the steepest increase in seven months due to housing and food costs, while producer prices unexpectedly declined to 2.6% against estimates of 3.3%.Geopolitical risk also underpinned bullion as Israel attacked Hamas positions in Qatar and Poland intercepted suspected Russian drones, marking a rare NATO military response in the ongoing Russia-Ukraine conflict.The focus now shifts to the upcoming US Federal Reserve policy meeting, where markets have fully priced in a 25bps rate cut, while the likelihood of a larger 50-basis-point cut stands at just 8%, according to the CME Fed-Watch tool. Expectations have strengthened amidst signs of economic slowdown and political pressure from President Trump, who also faces legal resistance in his efforts to dismiss Fed Governor Lisa Cook. The Fed’s decision will come at a time of heightened uncertainty, with inflation readings showing resilience and the labor market showing visible cracks.Investors will closely watch Chair Powell’s comments for forward guidance on the rate path. Market participants have fully discounted a 25bps cut however, any comments from Fed chair which provides guidance regarding further cuts in the coming meeting could provide a boost in prices.Stance: Side-ways to positiveGold Range of 107500-108000-1,10,000-1,10,500(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
