5 days ago
Gold Falls as Crude Oil Surges and Dollar Strengthens
Gold prices went down in India on Monday.
The price dropped by Rs 500 for every 10 grams.
Silver did not change in India, although it became cheaper in global markets.
Oil prices rose sharply to USD 103 per barrel after a pipeline in Saudi Arabia was shut following drone attacks.
More expensive oil can increase inflation, which may make gold less attractive to investors.
A stronger US dollar and expectations of higher interest rates also pressured gold.
However, some analysts think gold could rise later because investors may seek it as a safe place during uncertain times.
ANZ still expects gold to reach USD 5,400 per ounce within 12 months.
Gold prices in the national capital fell Rs 500 to Rs 1,55,400 per 10 grams on Monday.
Silver remained unchanged at Rs 2,34,600 per kilogram, inclusive of taxes.
Global spot gold declined 1.3% to USD 4,291.71 per ounce, while silver fell nearly 3%.
Crude oil climbed to USD 103 per barrel after Saudi Arabia shut its East-West pipeline following drone attacks.
ANZ retained its 12-month gold-price target of USD 5,400 an ounce despite near-term pressure from inflation and possible Federal Reserve rate hikes.
- Who
- Gold and silver investors, traders, Mudrex analyst Akshat Siddhant, and Australia and New Zealand Banking Group.
- What
- Gold fell in India and global markets, while silver was steady domestically; crude oil rose sharply.
- Where
- The national capital and global commodity markets; the oil disruption involved Saudi Arabia’s East-West pipeline.
- When
- Monday, following gold’s Friday close; ANZ provided a 12-month price target.
- Why
- Higher crude prices, a stronger US dollar, inflation concerns, and expectations of Federal Reserve rate increases pressured gold, although geopolitical uncertainty supported its safe-haven appeal.
Near-Term Bearish Factors
Longer-Term Support Factors
Gold price direction
Near-Term Bearish Factors
Higher oil prices, inflation worries, a stronger US dollar, and probable Federal Reserve rate hikes are putting pressure on gold demand.
Longer-Term Support Factors
Persistent geopolitical uncertainty could strengthen gold’s safe-haven appeal and support prices.
Interest-rate outlook
Near-Term Bearish Factors
ANZ forecasts three 25-basis-point Federal Reserve rate increases by March 2027, which could weigh on gold.
Longer-Term Support Factors
ANZ still retained its 12-month gold target of USD 5,400, citing recovering gold-backed ETF holdings, speculative positions, institutional demand in China, and rising investor participation in India.
Key facts
- Domestic gold price
- Rs 1,55,400 per 10 grams for 99.9% purity
- Domestic gold change
- Down Rs 500 from Friday’s Rs 1,55,900
- Domestic silver price
- Rs 2,34,600 per kilogram, inclusive of taxes
- Global spot gold
- USD 4,291.71 per ounce, down USD 57.22 or 1.3%
- Global silver
- USD 62.82 per ounce, down nearly 3%
- Crude oil
- USD 103 per barrel, a fresh four-month high
- ANZ gold target
- USD 5,400 per ounce over 12 months
Sources
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