MCX Gold Falls as US Interest Rates Bite
Gold and silver prices on the Multi Commodity Exchange (MCX) declined due to elevated US interest rates, a stronger dollar, and rupee movements. The October gold contract was trading at ₹1.52 lakh per 10 grams, down 0.40%, while silver also traded lower.
The recent decline comes despite expectations of increased physical demand during India's upcoming festive and wedding season. Experts anticipate that this demand may offer some support to gold prices.
Gaurav Garg, Head of Research at Lemonn, attributed the pressure on gold and silver to the stronger dollar and elevated US yields. He noted that softer crude prices have eased some inflationary pressure, but developments around US-Iran negotiations have reduced immediate concerns over oil supply.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association, said gold and silver remain in bullish technical ranges despite recent easing. Global rates, inflation, and geopolitical developments are likely to continue driving volatility.