Gold price slips to Rs 3,61,766, silver drops 3%, breaking nine-week winning streak; experts cite these reasons
Gold prices fell on the Multi Commodity Exchange (MCX) on Friday as investors awaited key inflation data in the US. Gold prices are on track to end their nine-week winning streak, experts said, as intense selling pressure dragged the yellow metal down from record levels.
Gold and silver prices fall sharply ahead of US inflation data
Gold prices fell on the Multi Commodity Exchange (MCX) on Friday as investors awaited key US inflation data to be released later in the day. MCX Gold December futures fell 0.44 percent to Rs 1,23,552 per 10 grams, while MCX Silver December futures contracted 0.98 percent to Rs 1,47,052 per kilogram.
Gold prices are on track to end their nine-week winning streak, experts said, as intense selling pressure dragged the yellow metal down from record levels. “The decline comes as investors take profits amid stretched valuations, renewed optimism about a potential US-China trade deal and a strengthening US dollar,” they added. “Looking ahead, markets will focus on US CPI data due later today, updates on the US government shutdown and the meeting between US President Donald Trump and Chinese President Xi Jinping next week,” analysts said.
Earlier this week, gold saw its biggest intraday decline in five years, falling more than 5 percent in a single session. Despite the recent correction, gold continues to rise by over 50 percent so far this year, supported by global trade tensions. The market’s focus has now shifted to next week’s trade talks between US President Donald Trump and Chinese President Xi Jinping.
In the international market, spot gold fell 0.2 per cent to US$4,118.68 (Rs 3,61,766) per ounce at 03:15 GMT, marking its first weekly decline in ten weeks. Bullion has fallen nearly 3 percent this week, heading for its biggest weekly loss since mid-May. The strengthening US dollar has also weighed on gold prices, making the metal more expensive for those who hold other currencies. The dollar index rose for the third consecutive session.
The market’s attention is now on the US Consumer Price Index (CPI) report, which is expected to show that core inflation remained at 3.1 percent in September. The publication of this report was previously delayed due to the temporary government shutdown.
Investors are also factoring in the possibility of a 25 basis point rate cut by the US Federal Reserve next week. Low interest rates generally increase gold prices because they reduce the opportunity cost of holding a non-returning asset.
