Gold Prices Fall Amid Rising Oil Prices and Rate Hike Expectations
Gold prices on MCX fell 0.7% to Rs. 1,51,272 per 10 grams on September 11 amid rising oil prices. The October gold futures declined while Brent crude futures rose 0.46% to USD 108 per barrel.
The CME FedWatch Tool indicates that markets are currently pricing in a 27.6% probability of the Federal Reserve keeping rates unchanged and a 72.4% chance of a rate hike in September. Wael Makarem, financial markets strategists lead at Exness, said 'A stronger-than-expected reading would reinforce the case for several interest rate increases...'
US gold prices edged higher on Friday as expectations of a US rate hike strengthened. Spot gold was up 0.2% at USD 4,324.79 per ounce, while spot silver fell 0.3% to USD 63.39.
The support and resistance levels for gold and silver on MCX are also mentioned in the report. Gold has support at Rs 1,51,100-Rs. 1,50,150, while resistance is at Rs. 1,53,300-Rs. 1,54,400.