The US CPI increased from the previous month’s 0.2% to 0.6% in August on rising oil prices. Compared to the market expectation of 3.6%, annualized CPI increased by 3.7% and these sticky inflation worries are dragging down the price of gold. Despite the FED being on track to hold rates steady at their upcoming rate call next week, the rise in US inflation is prompting markets to reassess the likelihood of further rate hikes from the FED in the November meeting. At its meeting on September 19–20, the probability of the U.S. Central Bank announcing that it would hold interest rates steady is 97%. The next support for the gold is Rs. 58300 and Rs. 58000 as the price has fallen below Rs. 58800 and that begins to encounter the level of resistance. – Mr. Sachin Kothari, Director of Augmont Gold for All

By Sujata