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Gold Steadies Near $4,000 as Dollar Strengthens and SBI Seeks National Gold Policy

Fed-cut expectations have cooled, keeping bullion in a narrow, volatile range.

Overview

  • Spot prices hovered around $3,970–$4,000 after a near 2% slide on Tuesday, then rebounded about 1.2% on Wednesday as global stocks weakened.
  • Traders now assign roughly a 69–71% probability to a December Federal Reserve rate cut, down sharply from over 90% earlier, according to CME FedWatch.
  • ADP reported a 42,000 rise in private-sector payrolls, a modest increase that tempered hard-landing fears but did little to lift cut expectations.
  • Pakistan’s APGJSA reported further declines in local rates to about Rs419,362 per tola, tracking international weakness and currency moves.
  • China’s cut to a VAT exemption on exchange-traded gold (to 6% from 13%) and SBI Research’s call for a comprehensive Indian gold policy underscore shifting retail demand and rising financialisation, with India’s 2024 consumption at 802.8 tonnes, RBI reserves near 880 tonnes, ETFs up 165% YoY, and sizable SGB-related fiscal costs.