According to Vedika Narvekar, Research Analyst – Commodities & Currencies, Anand Rathi Share and Stock Brokers, investors are awaiting the US Federal Open Market Committee’s decision later in the day.
While the Fed is widely expected to hold rates, market participants continue to price in a hike before year-end as elevated energy prices keep inflation high, she said.
Narvekar said gold-backed exchange-traded funds, which had continued buying through the correction since August, have started witnessing outflows, potentially opening the door for further downside unless central bank purchases rise significantly.
On the demand front, Chinese households are buying the dip, while Indian buyers are holding back ahead of the festival season, expecting prices to fall further, she added.
