Gold Prices Rise Amid Lower Oil Prices and Subdued Dollar
Gold prices rose on MCX on September 18 due to lower oil prices. The price of October gold futures increased by 0.21% to Rs. 1,53,309 per 10 grams.
September silver futures also advanced by 0.55% to Rs. 2,39,522. Meanwhile, Brent crude futures fell 1.06% to USD 103.7 per barrel and US West Texas Intermediate (WTI) edged lower by 1.08% to USD 100.8 per barrel.
Domestic gold prices also rose with 24K gold increasing by Rs. 154 to Rs. 1,54,420 per 10 grams and 22K gold advancing by Rs. 145 to Rs. 1,41,550.
US gold prices inched higher as lower oil prices and a subdued US dollar offered support, while market participants kept their focus on developments in the Middle East. Spot gold was up 0.57% at USD 4,336.64 per ounce, and US gold futures were up 0.14% at USD 4,405.75.
According to Ahmad Assiri, research strategist at Pepperstone, if oil corrects sharply, easing inflation and rate-hike expectations, or if extreme escalation forces the world to counter recession, or if fiscal recklessness dominates the horizon over the rate channel, the link between gold and oil could weaken.