Gold Prices Rise Amid Decline in Oil Prices
On September 18, gold prices on MCX rose by 0.21% to Rs. 1,53,309 per 10 grams due to a decline in oil prices. This marked an increase of Rs. 154 for 24K gold and Rs. 145 for 22K gold compared to the previous day's prices.
Meanwhile, Brent crude futures fell by 1.06% to USD 103.7 per barrel, while US West Texas Intermediate (WTI) edged lower by 1.08% to USD 100.8 per barrel.
The rise in gold prices was attributed to the lower oil prices and a subdued US dollar, which provided support for US gold prices. Spot gold rose by 0.57% to USD 4,336.64 per ounce, while US gold futures were up 0.14% at USD 4,405.75.
Ahmad Assiri, research strategist at Pepperstone, noted that the link between gold and oil could weaken if oil corrects sharply, easing inflation and rate-hike expectations or if extreme escalation forces the world to counter recession.