Gold prices on the Multi Commodity Exchange (MCX) are seeing an upward trend today, August 29, 2025. This increase occurs amid a complex interplay of factors, including international market dynamics, and expectations regarding Federal Reserve policy.

Factors Influencing Gold Prices

Several elements contribute to the fluctuation of gold rates in India. These include:

• Global Economic Factors: Global economic instability, international relations, and the strength of the U.S. dollar against other currencies all play a role. Gold prices often move inversely to the dollar's value.
• Supply and Demand: The supply of gold, influenced by production costs and mining activities, impacts prices. Increased demand, especially during wedding and festive seasons in India, can also drive prices up.
• Geopolitical Tensions: Economic and political instability tend to increase demand for gold as a safe-haven asset.
• Central Bank Policies: The Reserve Bank of India's (RBI) gold reserves and monetary policies influence gold rates. A hawkish Federal Reserve could pressure gold prices.
• Inflation: Rising inflation often leads to increased gold prices, as gold is seen as a hedge against inflation.
• Market Sentiment: Perceptions of risk and economic data releases influence investor behavior in the gold market.

Gold Rates in Major Cities

Here's a glimpse of gold prices in some major Indian cities as of today, August 29, 2025:

• Delhi: 24-carat gold is trading at ₹1,02,020 per 10 grams, while 22-carat gold is at ₹93,518 per 10 grams.
• Mumbai: The rate for 24-carat gold is ₹10,220 per gram, and 22-carat gold costs ₹9,368 per gram. Another source indicates ₹1,02,600 for 24K and ₹93,858 for 22K per 10 grams.
• Chennai: 24-carat gold is priced at ₹1,02,490 per 10 grams, and 22-carat gold at ₹93,949 per 10 grams.
• Kolkata: 24-carat gold is at ₹1,02,060 per 10 grams, and 22-carat gold at ₹93,555 per 10 grams.
• Bangalore: 24-carat gold is trading at ₹1,02,280 per 10 grams, while 22-carat gold is at ₹93,757 per 10 grams.

It's important to note that these are indicative prices and may vary based on jeweler, location, and making charges.

Global Market Trends

Internationally, spot gold prices saw a rise of 0.42% to $3,410.49. As of August 28, 2025, the live gold spot price was $3,403.97 per ounce. Gold is trading near two-week highs, influenced by political uncertainty at the Federal Reserve and speculation about upcoming rate cuts. Some analysts identify $3,400 as a critical resistance level.

Market Expectations

Market sentiment suggests a possible Federal Reserve rate decrease in September. According to the CME FedWatch Tool, there's a significant chance of a 25-basis-point rate cut. However, the dollar's volatility could limit gold's gains.

Gold as an Investment

Gold is considered a safe-haven asset, especially during economic and geopolitical uncertainty. Factors like trade policies, monetary strategies, and demand from emerging markets also influence gold pricing. Investors often turn to gold during market downturns due to its historical stability.

In conclusion, gold prices are currently experiencing an upswing on the MCX, influenced by a mix of global and domestic factors. Monitoring these factors is crucial for investors seeking to make informed decisions in the gold market.