Gold Prices Extend Losses Amid Import Duty Rumors, Caution Ahead of Jackson Hole

Gold prices on the Multi Commodity Exchange (MCX) continued their decline for a fourth consecutive session, falling Rs 896, or 0.56 per cent, to Rs 1,58,100 per 10 gram. This brings the total decline over four sessions to Rs 5,318, or 3.25 per cent.

The decline is attributed to market rumors that the government may reduce the import duty on gold from 15 per cent to 6 per cent, despite no official confirmation of such a move. Jigar Trivedi, Senior Research Analyst at IndusInd Securities, notes that speculative short positions have added to the pressure on MCX gold.

Ahead of US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium, investors are cautious about the outlook for US monetary policy. In the international market, spot gold fell 0.5 per cent to USD 4,576.30 an ounce, while US gold futures declined 0.8 per cent to USD 4,629 an ounce.

Ponmudi R, CEO of Enrich Money, says that the broader structure for MCX gold remains intact, with prices trading above key moving averages, supporting the medium-term positive trend. However, he also notes that momentum is cooling and that a sustained move below Rs 1,57,000 could extend the correction towards Rs 1,55,500-Rs 1,55,000.