Synopsis: Gold surged past the ?1 lakh mark on MCX and $3,400 on COMEX after Jerome Powell’s Jackson Hole speech boosted hopes of a Fed rate cut. Analysts suggest cautious optimism, with key resistance and support levels in focus.
Gold prices soared on Friday, reclaiming the psychologically crucial ?1 lakh per 10 gm on MCX and $3,400 per troy ounce on COMEX, as investors priced in a likely US Federal Reserve rate cut following Jerome Powell’s speech at the Jackson Hole Symposium.
The October 2025 MCX gold contract ended ?956 higher, while COMEX gold gained 1.09%, closing at $3,418.50 per ounce, highlighting strong global buying momentum.
Rate Cut Speculation Fuels Rally
Powell’s comments were interpreted as a sign that the Fed remains data-dependent and flexible, raising expectations of a 25-basis point cut in September’s FOMC meeting. A weaker US dollar outlook further supported gold’s surge.
Ross Maxwell, Global Strategy Lead at VT Markets, said, “Powell’s speech confirmed the Fed’s readiness to act, making a September cut highly probable. This instantly boosted gold as traders anticipated a softer USD and higher safe-haven demand.”
Market Sentiment
Sugandha Sachdeva, Founder of SS WealthStreet, noted that Powell’s acknowledgment of a cooling labor market pushed the US dollar index down by 0.90%, reinforcing gold’s appeal. Political pressure on the Fed, she added, may further tilt policy toward easing.
Domestically, Aksha Kamboj, Vice President of IBJA, remarked, “Gold remains a safe haven amid global uncertainty. While jewellery demand is muted, prices near ?99,358 are reviving buying interest ahead of the festive season.”
Technical Outlook
- Support levels: ?97,000–?98,200 (MCX), $3,280–$3,310 (COMEX)
- Resistance levels: ?1,01,400 (MCX), $3,410 (COMEX)
Analysts warn of short-term volatility but see a constructive long-term trend if these support levels hold. A sustained breakout above resistance could trigger a fresh bullish phase for gold globally.
Investor Takeaway
With the Fed’s next move hinging on inflation and labor data, gold investors are advised to track USD movements and Fed commentary closely. While near-term swings may persist, the long-term outlook for gold remains strong amid policy uncertainty and safe-haven demand.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Readers are encouraged to consult with certified financial advisors before making trading or investment decisions.
