MCX Gold Prices Plummet as US Dollar Strengthens

Gold prices on MCX took a hit yesterday, August 14, as the US dollar strengthened and US inflation data eased concerns about a Federal Reserve rate hike in September. The August gold futures dropped by 0.66% to Rs. 1,52,449 per 10 grams, while September silver futures declined by 0.99% to Rs. 2,33,106.

The rise of the US dollar and higher US bond yields weighed on gold prices globally. However, despite this, the broader structure for gold remains constructive as prices continue to trade above key EMAs.

Ilya Spivak, head of global macro at finance content network Tastylive, noted that 'gold may be setting up for a meaningful rally now.' He added that if $4,400 is taken out, reaching $5,000 by year-end would not be a stretch.