Blitz Bureau
NEW DELHI: Gold prices dipped nearly 3 per cent on a weekly basis due to repricing of US monetary policy and a surge in crude oil raising inflation concerns.
The MCX gold futures (October) inched up 0.03 per cent while MCX silver futures (September) shed 0.07 per cent. The yellow metal stood at Rs 1,52,815, while the white metal stood at Rs 2,37,500.
The price of 10 grams of 24-carat gold was at Rs 1,54,884 on Friday down from Rs 1,59,578 seen last Friday, according to data published by the India Bullion and Jewellers Association (IBJA).
Precious metals touched a three‑month high, a midweek rebound after sharp selloff and a final pullback as markets reacted to a mix of geopolitical tensions, shifting Federal Reserve expectations and stronger‑than‑expected US labour data.
A blockbuster August jobs report on Friday reversed much of the dovish shift from the US Federal Reserve in a single session, a market participant said.
Bullion initially found support from geopolitical uncertainty and weakness in the US dollar. However, the escalation in the US-Iran conflict, including Iran’s retaliatory attack on Kuwait following renewed US strikes on Iranian rocket launchers near the Strait of Hormuz surged crude oil prices adversely affecting gold.
The heightened inflation concerns due to crude oil price rally pushed expectations of a September Federal Reserve rate hike sharply higher.
Rising Treasury yields and a stronger dollar consequently outweighed safe-haven demand, leading to a sharp correction in precious metals.
