Gold Prices End Week Slightly Lower Amid Global Volatility
The global gold market experienced a volatile week, with prices slightly lower at the end of it. International spot gold began at around $4,433 per ounce and dropped to around $4,419 per ounce by September 4.
However, in India, gold prices initially declined but recovered towards the end of the week. Delhi 24K gold moved from approximately Rs 151,940 per 10 grams on August 31 to Rs 150,310 on September 2, before recovering to around Rs 151,830 on September 4.
According to Enrich Money's CEO R Ponmudi, 'Commodity markets had one of their most volatile weeks in months, driven by a fresh flare-up in the US-Iran conflict, a sharp reversal in Federal Reserve rate expectations mid-week, and a blockbuster August jobs report on Friday that reversed much of that dovish shift in a single session.'
Ponmudi added that bullion initially found support from geopolitical uncertainty and weakness in the US dollar. However, the escalation in the US-Iran conflict produced an unusual market reaction, with rising Treasury yields and a stronger dollar outweighing safe-haven demand, leading to a sharp correction in precious metals.