Gold Prices Slide for Fourth Straight Session Amid Profit-Booking
Gold futures have extended their decline for the fourth consecutive session, sliding Rs 856 to Rs 1.58 lakh per 10 grams due to profit-booking in domestic markets. This decrease comes despite concerns over US fiscal finances providing some support to the precious metal. The October delivery of gold fell by 0.54% and the December contract dropped 0.59% to Rs 1,59,450 per 10 grams.
The Comex futures for the December contract declined $28.49, or nearly 1%, to trade at $4,635.51 per ounce in New York. Analysts attribute this decline to investors remaining cautious ahead of US Federal Reserve Chair Kevin Warsh's speech at Jackson Hole Symposium and concerns over persistent inflation, elevated bond yields, and ongoing geopolitical tensions.
Renewed geopolitical tensions have added to the caution, with the US signalling no immediate return to negotiations with Iran and stepping up economic pressure through fresh sanctions. This has kept uncertainty around the Middle East and the strategically located Strait of Hormuz in focus.