Gold Prices Plummet 3% on Fed Rate Hike Expectations
Gold prices dipped nearly 3% on a weekly basis due to expectations of a US Federal Reserve rate hike and a surge in crude oil prices. On Friday, MCX gold futures (October) edged up 0.03%, while MCX silver futures (September) shed 0.07%. The price of 10 grams of 24-carat gold was at Rs 1,54,884 on Friday, down from Rs 1,59,578 seen last Friday.
The market mood shifted several times this week in response to various economic indicators and geopolitical tensions. A blockbuster August jobs report reversed much of the dovish shift from the US Federal Reserve, pushing Treasury yields and the US dollar higher. This led to a sharp correction in precious metals as rising interest rates outweighed safe-haven demand.
Analysts pointed out that immediate resistance for Comex Gold is placed at $4,500-$4,530 zone, while support lies at $4,330-$4,360 zone. For MCX gold, immediate resistance is placed at Rs 1,56,500-Rs 1,57,000 zone, with support lying at Rs 1,51,500-Rs 1,52,000.