Gold Loses 3% Over The Week As Growing Expectations Of A US Fed Rate Hike Weigh On Prices
Gold fell nearly 3% this week as strong US jobs data, higher crude prices and rising Fed rate hike expectations boosted Treasury yields and the dollar.
Gold Loses 3% | Representative Image
New Delhi: Gold prices ended the week nearly 3% lower as stronger US economic data, rising crude oil prices and changing expectations around the Federal Reserve’s next interest rate move weighed on bullion.
According to India Bullion and Jewellers Association (IBJA) data, 24-carat gold prices stood at Rs 1,54,884 per 10 grams on Friday, compared with Rs 1,59,578 a week earlier.
MCX Gold, Silver Trade Flat
On Friday, MCX gold futures for October edged 0.03% higher to Rs 1,52,815, while September silver futures slipped 0.07% to Rs 2,37,500.
Precious metals witnessed sharp swings during the week as investors responded to geopolitical tensions, US labour market data and changing Federal Reserve rate expectations.
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Gold initially received support from a weaker US dollar and safe-haven buying. However, escalating US-Iran tensions pushed crude oil prices higher, fuelling concerns over inflation.
US Jobs Data Pressures Gold
Higher inflation expectations strengthened the possibility of a US Fed rate hike in September, pushing Treasury yields and the dollar higher and putting pressure on gold.
Bullion recovered during the middle of the week after weaker US labour data and dovish Federal Reserve commentary raised hopes of a softer monetary policy stance.
The recovery proved short-lived after stronger-than-expected US employment data on Friday again lifted the dollar and Treasury yields.
Key Gold Price Levels
Analysts see immediate resistance for Comex gold at $4,500-$4,530, while support is placed at $4,330-$4,360.
For MCX gold, resistance is seen at Rs 1,56,500-Rs 1,57,000, with support at Rs 1,51,500-Rs 1,52,000.
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