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MCX gold slides below ₹1.5 lakh per 10 grams for seventh straight session
Prices fell 1.3% to ₹1,49,665 per 10 grams, and the drop extends a six-session decline as a stronger US dollar and rising bond yields weigh on the metal.
MCX gold broke below the ₹1.5 lakh mark for 10 grams, sliding a further 1.3% to ₹1,49,665 in Wednesday trade, its lowest level in more than three weeks. The move continued gold's seventh consecutive session of losses, with prices down cumulatively by ₹13,564 per 10 grams over the past six trading sessions, according to LiveMint Markets.
Traders linked the pressure on gold to a firmer US dollar and higher bond yields, driven by renewed inflation concerns and expectations for a US Federal Reserve rate hike. LiveMint Markets reported that geopolitical tensions in the Middle East pushed crude oil higher, intensifying inflation worries and reducing demand for non-yielding safe-haven assets like gold.
The article also noted that the US and Iran exchanged strikes for the first time in about a month, with American forces reportedly hitting an island in the Strait of Hormuz and Iran responding with attacks on the United Arab Emirates and Jordan. That escalation lifted Brent crude to a more than one-month high, while the dollar moved to a two-week high.
Market pricing shifted as traders assessed the potential impact of the energy shock and inflation trajectory. According to LiveMint Markets, the likelihood of a Fed rate hike at the central bank's policy meeting this month is at 68% based on the CME FedWatch Tool, compared with 34% before Fed Chair Kevin Warsh spoke at Jackson Hole.
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