MCX Gold Falls as Fed Hike Expectations Rise

Gold prices on MCX fell by 0.54% to Rs. 1,54,935 per 10 grams on September 4 as investors booked profits amid a rise in US dollar and bond yields.

The decline was also influenced by expectations of a potential interest rate hike by the US Federal Reserve, with markets pricing in a 50.2% chance of a rate increase in September.

October gold futures on MCX lost 0.54%, while September silver futures declined by 0.61%. However, Brent crude futures rose by 0.53% to USD 96.03 per barrel.

Ross Maxwell, global strategy operations lead at VT Markets, noted that weak figures and rising unemployment could weaken the case for a rate hike, potentially leading to gold prices recovering.