Gold Market
Daily movements in the gold market and what is driving them.
Gold fell 0.85% on Monday, hitting a one-month low of $4,253, as the 10-year US Treasury yield climbed above 5% for the first time since 2023 and the US Dollar strengthened. Markets await the Federal Reserve's policy decision on Wednesday.
Gold edged lower on Monday as rising oil prices fuelled inflation worries. Traders now price in an 86% probability of a US rate hike, a headwind for the non-yielding metal.
Gold trades in a narrow range just above $4,300 as a resilient US dollar and expectations of hawkish decisions from the Fed, BoE, and BoJ this week cap gains.
Gold prices rose more than 1% on Friday, recovering from recent lows. Strong US inflation data boosted expectations of a Federal Reserve rate hike next week. Indian demand stayed weak while Chinese buying held up.
Gold remains the traditional hedge, but copper and energy markets are gaining structural relevance as demand from electric vehicles, AI, and India's energy needs reshape commodity investment.
TD Securities says gold is outperforming other precious metals despite rising energy prices and Fed hike expectations. Near-term CTA selling is possible below key levels, but longer-term support remains robust.
Switzerland has banned the purchase, import and transit of Sudanese gold along with chemicals used in extraction, joining EU efforts to cut off financing for Sudan's ongoing civil war.
Gold declined 0.9% to $4,360 after US producer prices and surging oil prices fuelled expectations of a hawkish Fed, sending yields and the dollar higher.
The Nifty slipped below 23,450 to hit a new three-month low amid selling in real estate, auto and IT. PSU banks and oil & gas stocks offered support as crude rose above $100.