Gold Prices Plummet on Stronger Dollar, US Jobs Data
Gold futures on India's Multi Commodity Exchange extended their losing streak for a fourth straight session, falling by Rs 833 to Rs 1.50 lakh per 10 grams.
The decline was attributed to a stronger US dollar and bearish global trend, keeping investors away from the precious metal.
Aamir Makda, Commodity & Currency Analyst - Technical Research at Choice Broking, said that MCX gold has continued its negative momentum due to a stronger US dollar and Treasury yields.
The pressure on gold intensified after stronger-than-expected US private sector employment data raised inflation concerns and strengthened expectations of further interest rate hikes by the Federal Reserve.
In the global market, Comex gold futures for December delivery slipped $17.93 to $4,300.47 an ounce in New York, with Ashish Rajodiya, Head of Commodities at PL Capital, noting that the dollar index climbed to its highest level in nearly two months and Treasury yields inched closer to 5.11 per cent.