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 Up Early-Week Gains

According to India Bullion and Jewellers Association data, 24-carat gold stood at ₹1,59,578 per 10 grams on Friday, compared with ₹1,62,603 at Monday's opening.

Bullion had rallied earlier in the week amid concerns over currency debasement and US Treasury support for longer-dated bonds. However, the momentum faded after fresh economic data strengthened expectations that US interest rates could remain elevated for longer.

July's US personal consumption expenditures inflation came in at 3.7 per cent year-on-year, while labour and trade indicators also pointed towards resilience in the world's largest economy.

Warsh Speech Hits Bullion

A hawkish speech by Warsh at the Jackson Hole symposium further dented sentiment. Gold reportedly plunged around $70 within minutes of his remarks before recovering some losses.

Expectations of a September rate hike subsequently increased, while projected year-end rates climbed to their highest level in three weeks.

Silver followed gold's volatile trajectory, retreating after touching a 10-week high during the week. Copper also eased after reaching fresh record highs.