Gold and silver prices remained weak in India amid a fall in global rates. Gold futures down 0.2% on MCX 51,501 per 10 grams while silver futures fell 1.4% 55,640 per kg. yellow metal has fallen Rs 1,000 this week amid a firming US dollar and bond yields. In global markets, gold was down 0.3% at a three-week low of $1,753.84 an ounce, tracking losses for the fifth day in a row, on a firmer dollar and a rise in US bond yields.
Top US Federal Reserve officials said the dollar was climbing again after the central bank needed to continue raising interest rates to bring high inflation under control, while bond yields hardened. Rising rates increase the opportunity cost of holding non-yielding bullion.
“Recent US Fed meeting minutes have sent signals of a higher interest rate hike and a sharp recovery in the US dollar. gold prices at a three-week low. In London’s major spot market, prices have fallen by more than 2.8 per cent so far this week. An optimistic economic release from the US pushed the US dollar to near one-month highs, dampening the appeal of non-fertile assets such as gold. However, in the domestic market, a weak rupee rebounded from its recent highs restricted major liquidation pressure,” said Harish V, Head of Commodities at Geojit Financial Services.
In other precious metals, spot Silver fell 1.5% to $19.23 an ounce. Commodity traders will focus on next week’s Jackson Hole, Wyoming, central bankers’ symposium, where finance chiefs and central bankers will speak.
Global equity markets’ rally of two months from June lows appears to be running out of steam, following minutes of the Fed’s most recent meeting with downward pressure on policymakers to keep raising borrowing costs until then. until the prices are brought under control.
Gold Price Outlook
“While the US dollar and bond yields influence gold prices, rising global growth concerns, price pressures and rising geopolitical tensions support gold. The mixed economic data from major economies highlights the increasing stress on the economies,” Kotak Securities said in a note.
“Virus-related restrictions are hampering economic activity in China, while Indian gold prices remain elevated on the back of a weaker rupee and higher import duties and may impact demand. The brokerage said, “Gold has corrected after failing to build on gains above $1800 an ounce level and with US Dollar holding firm we can see price pressure, although we can see price pressure in the range of 1750-1760.” Can see some breaks near the level.” (with agency input)
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