MCX gold futures fall 2.5 per cent in a week
Gold prices declined over the week as rising crude oil prices complicated the inflation outlook, according to Mint.
Gold prices in India continued to decline over the week, while silver reached its lowest levels of the year, according to a report by Mint. Gold Multi Commodity Exchange (MCX) gold futures with December expiry saw a 2.5 per cent weekly decline.
MCX gold futures with December expiry closed at ₹1,50,390 per 10 gram on October 1. The bullion ended the month 7.9 per cent lower at ₹1,38,419 per 10 gram.
The decline in gold prices occurred as rising energy prices and inflation concerns suggested US interest rates may remain elevated for longer. International gold prices saw their worst October decline since 2008.
Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara Pvt. Ltd, said gold prices are likely to remain volatile. He noted that stronger dollar movement, rising bond yields, and interest rate expectations could restrict an immediate rise in prices.
Maurya added that increased demand for weddings and the festive season could support domestic gold prices. He suggested consumers could buy gold during Diwali instead of waiting for a significant price fall.
Bart Melek, global head of commodity strategy at TD Securities, told Bloomberg that higher oil prices are triggering a risk-off environment. This is reducing liquidity for equities and gold is being caught up in the momentum.