4 days ago
Gold Futures Extend Four-Session Slide Amid Profit-Booking Before Fed Speech
Gold prices in India fell for the fourth day in a row.
Some investors sold gold to lock in profits after prices had risen.
New US inflation data was higher than expected, which put pressure on gold.
Investors were also waiting to hear a speech by Federal Reserve Chair Kevin Warsh.
Higher bond yields made gold less attractive to some traders.
Tensions involving the US, Iran, and the Strait of Hormuz added uncertainty.
Concerns about US government finances still supported gold somewhat.
Gold prices also fell in international markets.
October gold futures on the Multi Commodity Exchange fell Rs 856, or 0.54%, to Rs 1.58 lakh per 10 grams.
The December domestic contract declined 0.59% to Rs 1,59,450 per 10 grams.
Analysts attributed the decline partly to profit-booking after higher-than-expected US Personal Consumption Expenditures inflation data for July.
Investors remained cautious ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium.
Concerns over US fiscal finances and geopolitical tensions limited the decline, while December Comex gold fell nearly 1% to $4,635.51 per ounce.
- Who
- Gold traders and investors, with analysts Akshat Siddhant and Manav Modi commenting on the decline.
- What
- Gold futures fell for a fourth consecutive session in both domestic and international markets.
- Where
- Domestic trading took place on the Multi Commodity Exchange, while international trading was reported in New York on Comex.
- When
- During the reported trading session, ahead of Kevin Warsh’s speech at the Jackson Hole Symposium; the US inflation data cited was for July.
- Why
- Profit-booking, higher-than-expected US inflation, elevated bond yields, and caution ahead of the Federal Reserve speech pressured prices; fiscal concerns and geopolitical tensions provided some support.
Key facts
- October domestic contract
- Fell Rs 856, or 0.54%, to Rs 1.58 lakh per 10 grams.
- December domestic contract
- Declined 0.59% to Rs 1,59,450 per 10 grams.
- Price trend
- Domestic gold futures extended their decline for a fourth straight session.
- US inflation
- Higher-than-expected July Personal Consumption Expenditures inflation data contributed to profit-booking.
- December Comex contract
- Fell $28.49, or nearly 1%, to $4,635.51 per ounce in New York.
- Market support
- Concerns over US fiscal finances and geopolitical tensions limited gold’s decline.
- Geopolitical concerns
- Fresh US sanctions on Iran and uncertainty involving the Strait of Hormuz added to market caution.
Quotes
Manav Modi
Commodities Analyst at Motilal Oswal Financial Services Ltd
“Gold prices inched lower, as investors remained cautious ahead of US Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole Symposium, while balancing concerns over persistent inflation, elevated bond yields and ongoing geopolitical tensions.”
thehansindia.com
Sources
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