MCX gold prices dropped 1.3% to ₹1,49,665 per 10 grams on September 2, marking their lowest level in over three weeks. This decline extended a six-session losing streak amid rising inflation concerns and expectations of a Federal Reserve interest rate hike, according to livemint.com.
The sustained selling pressure on gold has been driven by a stronger US dollar and increasing bond yields, factors that typically weigh on non-yielding assets like gold. Jateen Trivedi, VP of Research Analyst – Commodity and Currency at LKP Securities, noted that gold prices remained under pressure due to these macroeconomic developments, which have also been influenced by ongoing geopolitical tensions.
The drop below ₹1.50 lakh per 10 grams is significant as it breaks a psychological support level for investors and traders in the Indian market. This trend reflects broader global market dynamics where gold is reacting to monetary policy signals from the US Federal Reserve and currency fluctuations. The current price movement contrasts with previous periods of gold price stability, highlighting the impact of external economic factors on domestic commodity markets.
Gold prices on MCX have now declined for seven consecutive days, a rare extended downtrend in recent months. Market participants will closely watch upcoming US inflation data and Federal Reserve announcements for further direction, as these will be key determinants of gold’s short-term trajectory in the Indian market.