MCX Gold Prices Decline Amid Rising Oil Costs and Fed Watch
The gold price on MCX fell by 0.12% to Rs. 1,53,950 per 10 grams on September 10 amid rising oil prices. The October gold futures declined in value, while Brent crude futures and US West Texas Intermediate (WTI) exhibited slight changes.
Market participants were cautious ahead of the US inflation data release and the Federal Reserve's policy decision. According to the CME FedWatch Tool, there is a 39.8% probability that the Fed will keep rates unchanged and a 60.2% chance of a rate hike in September.
Globally, gold prices were higher due to a softer dollar. Spot gold was up 0.3% at USD 4,412.84 per ounce, while US gold futures for December delivery fell 0.1%. Spot silver rose 0.2%, but platinum declined by 0.6%.
Marex analyst Edward Meir stated that the geopolitical developments in the Persian Gulf are of secondary importance to gold, which is instead influenced by a weaker dollar and US fiscal pressures undermining confidence in government debt and currency.