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Gold and silver slump on MCX after Fed hawkish signals
MCX gold October futures fell nearly 2% to ₹1,53,640 per 10 grams, while US gold futures were down about 4% over two sessions as yields rose.
Gold and silver prices dropped sharply in early trade on India’s MCX on Monday, with investors taking profits amid weaker global sentiment, according to LiveMint Markets. MCX gold October futures fell by more than ₹2,600, or almost 2%, to ₹1,53,640 per 10 grams, while MCX silver September contracts dropped by over ₹4,200, or nearly 2%, to ₹2,32,501 per kg.
LiveMint Markets linked the selloff to a more hawkish tone from U.S. Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. The outlet said Warsh’s comments pointed to the possibility of further rate hikes if inflation does not move to the Fed’s 2% goal.
The report added that U.S. inflation has stayed above target, citing that US PCE rose 3.7% year-on-year in July for the 65th straight month. It also noted higher yields, with the US 10-year bond yield at 4.74% and the 30-year yield at 5.22%, as rates climbed.
LiveMint Markets also said the stronger dollar pressure and the ongoing US-Iran conflict weighed on gold, as energy prices have risen and the risk of an inflation flare-up could prompt additional rate hikes. Analysts cited by the outlet pointed to nearby technical levels for gold support and resistance after the sharp move, including support around ₹1,55,000 and resistance near ₹1,58,000.
Latest closeGold $4,504.10 ▼2.3%|Silver $67.09 ▼3.4%