Commodities
Gold Prices Plunge on MCX Amid Easing Rate Hike Expectations
Gold prices on the MCX continued to slide, falling to nearly Rs 1.54 lakh/10 gm on Tuesday morning. However, internationally, gold prices inched higher as US Treasury yields eased from recent highs.
The easing of Treasury yields and reduced expectations of a US Federal Reserve rate hike supported demand for gold. In fact, traders are now pricing in a 35% chance of a September rate hike, down from earlier expectations.
Experts Christopher Wood and John Paulson believe the recent correction in gold prices may be a buying opportunity. They see gold as an alternative to paper currencies and expect it to continue growing in demand.