Gold Price Today: Gold Drops Nearly 3% Weekly As Crude Oil Fuels Inflation Concerns

Gold prices declined nearly 3% over the week as markets reassessed expectations for US monetary policy, while a sharp rise in crude oil prices fuelled fresh inflation concerns.

On Friday, MCX October gold futures edged up 0.03%, while September silver futures slipped 0.07%. Gold settled at Rs 1,52,815, while silver stood at Rs 2,37,500.

Data from the India Bullion and Jewellers Association showed 24-carat gold at Rs 1,54,884 per 10 grams on Friday, compared with Rs 1,59,578 a week earlier.

Precious metals moved sharply during the week, reaching a three-month high before retreating.

Geopolitical developments, changing expectations around the Federal Reserve and stronger-than-expected US employment data drove the price swings.

Gold initially benefited from geopolitical uncertainty and a weaker US dollar.

Renewed US-Iran tensions, including Iran’s retaliatory strike on Kuwait after fresh US attacks on Iranian rocket launchers near the Strait of Hormuz, pushed crude prices higher.

The resulting inflation concerns increased expectations of a September Federal Reserve rate hike.

Higher US Treasury yields and a stronger dollar then pressured bullion.

Prices briefly recovered after softer US labour-market data and dovish signals from the Federal Reserve revived expectations of a less aggressive policy stance. That recovery faded after Friday’s August jobs report beat market expectations, sending yields and the dollar higher.

Analysts see immediate resistance for Comex gold at $4,500–$4,530, with support at $4,330–$4,360.

For MCX gold, resistance is placed at Rs 1,56,500–Rs 1,57,000, while support stands at Rs 1,51,500–Rs 1,52,000.

Also Read: Delhi-NCR Weather Today: Rain, Thunderstorms Likely As IMD Forecasts More Showers