New Delhi, India Oct 9, 2024: Gold prices on Wednesday declined Rs 133 to Rs 75,028 per 10 grams in futures trade amid weak global cues.
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Gold Contracts
On the MCX (Multi Commodity Exchange), gold contracts for December delivery traded lower by Rs 133 or 0.18 per cent at Rs 75,028 per 10 grams in a business turnover of 14,488 lots.
Analysts attributed the fall in gold prices to weak global cues.
Globally, gold futures decreased 0.13 per cent to USD 2,632 per ounce in New York.
Gold price eyes Fed minutes for fresh surge
In Wednesday’s Asian trade, gold price is seeing a slight bounce after five days of decline. Gold traders are eagerly awaiting Fed minutes to assess the scale of the next interest rate cut, especially after Friday’s strong US nonfarm payrolls data eliminated bets of a 50 basis points (bps) rate cut.
Fed minutes
The Fed minutes of the September meeting are likely to discuss the labor market and inflation outlook, as well as the way forward on interest rates. Recently, Fed policymakers continued to take an accommodative stance in their respective trades, although did not make any commitment on the size of the next rate cut.
Gold prices have already been under pressure this week due to the small possibility of interest rate cuts by the Fed, as buyers no longer see bullish confidence due to growing Chinese economic concerns due to the lack of additional stimulus announced by China. The dragon nation is the world’s largest yellow metal consumer, and therefore, rising economic concerns could weigh on physical demand for gold from Chinese consumers.
Safe Haven Investments
However, buying demand continues to fall as gold’s price continues to decline as safe-haven investments continue to be in demand, as rising tensions between Israel and Iran raise the risk of this conflict escalating into a wider regional war.
Reuters reported on Wednesday morning that Israeli Prime Minister Benjamin Netanyahu said Israeli airstrikes killed two successors of Hezbollah’s slain leader, while Israel expanded its ground offensive against the Iran-backed group and deployed a fourth army division to south Lebanon.
Inflation
Ahead of the Fed minutes, speeches by Fed Vice Chairman Philip Jefferson and San Francisco Fed President Mary Daly could provide some trading impetus to gold price. Fed official Jefferson had earlier said the decision to cut rates by 50 bps in September was “timely and consistent” with the Fed’s two mandates of achieving 2% inflation and maximum employment.
Source: GRS
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