Gold rally may pause as investors eye US Fed policy decision on September 17

Gold prices are expected to maintain their upward momentum though some consolidation could set in ahead of the US Federal Reserve's policy decision on September 17, analysts said.

Traders will focus on the trade inflation data to gauge the impact of tariffs, inflation numbers from major economies including UK and Euro zone, along with monetary policy meetings of Bank of England and Bank of Japan which will provide more guidance for bullion prices, they added.

Gold prices continued their positive momentum and closed higher for the fourth straight week, however, the pace of upward momentum slowed with some consolidation seen during mid-week. The price moves of more than 10% over past four-weeks has pushed investors/ traders on the back-foot as they have turned cautious and are reluctant to add fresh longs at current prices.

The Fed's two-day meeting is scheduled to begin on September 16, and will conclude on September 17, with a policy decision, followed by Chair Jerome Powell's press conference, set to draw attention amid rising tensions between the US President Donald Trump's administration and Fed officials.

On the Multi Commodity Exchange (MCX), the most traded gold futures for October delivery climbed ₹1,616 or 1.5%.

In the international market, Comex gold futures closed at USD 3,686.40 per ounce, before scaling USD 3,715.20 on September 9.

Meanwhile, silver mirrored the bullish performance of gold with sharper gains. Comex silver futures rose 1.62% to settle at USD 42.83 per ounce after touching an intraday high of USD 43.04.

On the MCX, silver futures surged to a lifetime high of ₹1,29,392 per kilogram.

Analysts said that while the near-term outlook suggests some consolidation, the broader trend for precious metals remains firmly upward, supported by central bank buying, safe-haven demand, and expectations of monetary policy easing.