Gold Falls Sharply on MCX Amid Weak Demand and Higher US Interest Rate Expectations
Gold prices on the Multi Commodity Exchange (MCX) fell by Rs 462 to Rs 1,52,305 per 10 grams in futures trade on Monday. This decline was amid weak spot demand and selling by participants. The gold October contracts fell 0.3% with a turnover of 1,390 lots.
Silver prices also declined, falling Rs 975 to Rs 2,36,683 per kg on the MCX. The silver December contracts declined 0.41% with a turnover of 1,512 lots. Globally, gold futures fell 0.84% to USD 4,492.68 per ounce, while silver was down 0.63% at USD 65.79 per ounce in New York.
The recent market pressure on precious metals has been linked to expectations of higher US interest rates following stronger-than-expected jobs data. The MCX and other global markets are closely watching the developments in the US job market, as it can impact investor sentiment towards gold and silver.