Gold Prices Plummet 3% Amid US Rate Hike Expectations and Higher Crude Oil
Gold prices plummeted by nearly 3% on a weekly basis due to repricing of US monetary policy and a surge in crude oil, raising inflation concerns. The MCX gold futures (October) rose slightly by 0.03%, while the MCX silver futures (September) shed 0.07%. On Friday, the price of 10 grams of 24-carat gold stood at Rs 1,54,884, down from Rs 1,59,578 seen last Friday.
The precious metals initially found support from geopolitical uncertainty and weakness in the US dollar but were later adversely affected by the escalation of the US-Iran conflict. The heightened inflation concerns due to crude oil price rally pushed expectations of a September Federal Reserve rate hike sharply higher, causing rising Treasury yields and a stronger dollar to outweigh safe-haven demand.
Analysts stated that immediate resistance is placed at $4,500, $4,530 zone for Comex Gold, while support lies at $4,330, $4,360 zone. For MCX gold, immediate resistance is placed at Rs 1,56,500, Rs 1,57,000 zone, while the support lies at Rs 1,51,500, Rs 1,52,000.