Overview
- Gold and silver reversed part of their strong August gains after Fed Chair Kevin Warsh’s late‑August remarks raised market odds of a September rate increase, triggering a sharp two‑day sell‑off.
- Global spot gold slid into the mid‑$4,400s per ounce and US futures fell, with Pakistan’s gold rate dropping Rs1,800 per tola to Rs466,136 and Indian retail and MCX prices easing.
- Prices have shown signs of stabilization early in September as traders weigh upcoming Fed decisions, US inflation and jobs data, and the timing and scale of Treasury buybacks.
- Analysts and institutional reports still cite a medium‑to‑long‑term bullish case driven by sustained central‑bank purchases, renewed ETF and physical demand, M2 money growth and persistent silver supply deficits.
- Market mechanics that could amplify future moves include higher real yields reducing demand for non‑yielding gold, large paper claims versus limited registered COMEX inventory, and the risk that renewed physical tightness would push prices higher for consumers and jewellers.