Gold Loses Glitter for 4th Day, Slips Rs 856 to Rs 1.58 Lakh/10g in Futures Trade

New Delhi: Gold futures extended its slide for the fourth straight session, shedding Rs 856 to Rs 1.58 lakh per 10 grams as investors remained cautious ahead of US Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole Symposium.

On the Multi Commodity Exchange, the yellow metal for the October delivery depreciated Rs 856, or 0.54 per cent, to Rs 1,58,140 per 10 grams.

The December contract also fell Rs 942, or 0.59 per cent, to Rs 1,59,450 per 10 grams.

The latest slide in MCX gold came as traders booked profits in domestic markets following higher-than-expected US Personal Consumption Expenditures (PCE) inflation data for July, said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex.

However, concerns over US fiscal finances continued to lend some support to the precious metal and limited the fall, he added.

Meanwhile, gold also came under pressure in the international markets, with Comex futures for December contract declining USD 28.49, or nearly 1 per cent, to trade at USD 4,635.51 per ounce in New York.

“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,” Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, said.

Renewed geopolitical tensions added to the caution.

The US has signalled no immediate return to negotiations with Iran and has instead stepped up economic pressure through fresh sanctions, keeping uncertainty around the Middle East and the strategically Strait of Hormuz in focus, Modi added.

With inflation refusing to cool and the US Treasury bond yields remaining elevated, the appeal for the precious metal is facing a tug-of-war between persistent global risks and pressure from tighter financial conditions, analysts said.

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