2 days ago
Gold and Silver Face Choppy September After Sharp Correction
Gold and silver prices dropped sharply last week.
Gold lost more than Rs 6,000 from its weekly peak.
Silver prices also fell by about 4%.
Traders expect prices to move up and down a lot in September.
They will watch US jobs numbers and other economic reports.
These reports may change expectations about what the Federal Reserve will do in September.
Investors are also watching inflation and business activity in major economies.
Geopolitical tensions could add to market uncertainty.
One analyst said comments about inflation and monetary policy led some investors to take profits.
MCX gold futures for October delivery fell Rs 6,157, or 3.8%, last week to Rs 1.56 lakh per 10 grams.
Silver futures for September declined Rs 9,893, or 4%, to Rs 2.36 lakh per kg.
Analysts expect fresh volatility as traders assess US jobs data, economic indicators and geopolitical tensions.
US non-farm payrolls, PMI readings and Eurozone and German inflation data could affect expectations for the Federal Reserve’s September decision.
Analysts said selling intensified after Kevin Warsh’s comments on inflation and monetary policy prompted profit booking.
- Who
- Bullion traders, investors and analysts, including Jateen Trivedi and Pranav Mer.
- What
- Gold and silver prices fell sharply, with markets preparing for renewed volatility in September.
- Where
- Indian bullion markets, including futures traded on the Multi Commodity Exchange of India.
- When
- Gold and silver declined last week as September began, with key economic data due later in the week.
- Why
- Prices and expectations are being influenced by US jobs data, inflation, economic activity, geopolitical tensions and potential Federal Reserve policy changes.
Key facts
- Gold price move
- October gold futures fell Rs 6,157, or 3.8%, last week.
- Gold price
- Gold futures ended at Rs 1.56 lakh per 10 grams.
- Gold weekly peak
- MCX gold declined from around Rs 1.63 lakh to Rs 1.56 lakh per 10 grams.
- Silver price move
- September silver futures fell Rs 9,893, or 4%.
- Silver price
- Silver futures ended at Rs 2.36 lakh per kg.
- Data to watch
- Markets will track PMI readings, Eurozone and German inflation, and US non-farm payrolls.
- Policy focus
- The data may influence expectations for the Federal Reserve’s September policy decision.
Quotes
Jateen Trivedi
VP Research Analyst for Commodity and Currency at LKP Securities
“The coming week is likely to remain highly volatile, with market participants attempting to price in the probability of a September Federal Reserve policy change.”
thehansindia.com
Sources
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