Gold Prices Fall on MCX Amid Higher US Dollar and Bond Yields
Gold prices on MCX declined by 0.66% to Rs. 1,52,446 on August 14 amid a higher US dollar and rising bond yields. Despite the easing of US inflation data for July, which reduced expectations of a rate hike by the US Federal Reserve in September, gold fell. The decline was also influenced by profit-taking from investors who had locked in gains after mild inflation data pushed bullion to its highest level in over two months.
Brent crude futures rose 0.08% to $87.14 per barrel, while US West Texas Intermediate (WTI) edged lower by 0.14% to $81.36 per barrel. Domestic gold prices saw a decline, with 24K gold falling by Rs. 71 to Rs. 1,52,890 per 10 grams and 22K gold declining by Rs. 65 to Rs. 1,40,150.
Ilya Spivak, head of global macro at Tastylive, stated that there is some episodic and speculative capital taking profit in gold due to the lack of a near-term catalyst. He believes that gold may be setting up for a meaningful rally, with a potential target of $5,000 by year-end if prices can break above $4,400.
The broader structure remains constructive as prices continue to trade above key EMAs, but gold faces resistance near the falling trendline around Rs. 1,56,000 and has witnessed profit booking. A sustained break below the current support level of Rs. 1,52,600 could extend the correction towards Rs. 1,50,000.