Gold Falls Nearly 1.86% For The Week As Hawkish US Fed Stance Weighs On Prices
New Delhi: Gold ended the week under pressure, falling nearly 1.86 per cent as stronger-than-expected US inflation data and hawkish signals from Federal Reserve Chair Kevin Warsh prompted investors to reassess the outlook for interest rates. On Friday, MCX October gold futures dropped 1.63 per cent to ₹1,56,400, while September silver futures declined 1.66 per cent to ₹2,36,651 per kg. Gold Gives…
Gold prices experienced a nearly 1.86% decline during the week as stronger-than-expected US inflation data and hawkish comments from Federal Reserve Chair Kevin Warsh unsettled investors. MCX October gold futures dropped 1.63% to ₹1,56,400 per 10 grams on Friday, while September silver futures fell 1.66% to ₹2,36,651 per kg. According to India Bullion and Jewellers Association data, 24-carat gold closed at ₹1,59,578 per 10 grams on Friday, down from ₹1,62,603 at the opening on Monday.
Gold prices had risen for five consecutive sessions to ₹1.56 lakh per 10 grams, driven by concerns over currency debasement and US Treasury support for longer-dated bonds. However, the upward trend waned as fresh economic data bolstered expectations that US interest rates might remain higher for an extended period. July's US personal consumption expenditures inflation stood at 3.7% year-on-year, and labor and trade indicators suggested resilience in the world's largest economy.
The recent losses in gold extended to four consecutive sessions on the MCX, totaling ₹5,318. Warsh's speech at the Jackson Hole symposium further dampened sentiment, causing gold to plummet by approximately $70 within minutes of his remarks before partially recovering. Anticipations of a September rate hike and projected year-end rates at their highest level in three weeks further intensified the decline. Copper prices also softened, reverting after reaching fresh record highs during the week.
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