Bullion Blues: Gold Drops Again While Dollar Holds the Throne

Gold slips again amid global cues and cautious
Fed stance Gold continued its downward trend this week, marking its third straight weekly decline. The drop is attributed to a resilient US dollar, hawkish signals from the Federal Reserve, and easing geopolitical tensions between the US and China. These factors have dampened demand for gold as a safe-haven asset, keeping prices in a narrow trading range.

On the Multi Commodity Exchange (MCX), gold futures for December delivery fell ₹165 (0.14%) to ₹1,21,067 per 10 grams. Internationally, Comex gold futures rose slightly by $13.3 (0.33%) to $4,009.8 per ounce, but remained below recent highs.

Notable updates:

• Dollar index hit a three-month high, making gold costlier for non-dollar holders
• Fed officials maintained a wait-and-watch tone, reducing expectations of a rate cut
• Easing US-China trade tensions contributed to lower safe-haven demand
• Silver also declined amid concerns over industrial demand
• Gold remains ₹11,000 below its October 17 peak of ₹1.32 lakh per 10 grams

Looking ahead
Analysts expect gold to remain range-bound until clearer signals emerge from the Fed and global economic indicators. Investors are advised to monitor currency movements and geopolitical developments closely.

Sources: Times of India, Orissa Post, NDTV Profit