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Below the Quote on Gold Commentary 19th September 2025 by Mr. Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd

Gold price witnessed high swings, as after recording some profit booking, a quick recovery was seen in the second half of the previous session.  Fed resumed rate cuts and opened the door to further easing, but tempered its message with warnings of sticky inflation, sowing doubt over pace of future easing.

Fed Chair Jerome Powell characterised policy action as a risk-management cut in response to the weakening labour market and said the central bank was in a "meeting-by-meeting situation" regarding the rate outlook. Dot plot showed that there was no change in rate cut probability in 2026 and 2027 while, growth forecast was also increased keeping the market on the edge regarding the monetary policy ahead. On data front, number of Americans filing new applications for unemployment benefits fell last week, data showed, but the labour market has softened as demand for and supply of workers have diminished.

Meanwhile, gold exports from Switzerland to China jumped 254% in August compared with July. As Fed cut its rates after eight months pause, BOE and PBoC kept their interest rates unchanged in recent announcement. No major data points are scheduled on the economic calendar from the US.

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