Gold Market
Original summaries of the reporting that moves the gold price, with every source linked.
Gold mining supply is highly inelastic in the short term. Higher prices trigger new projects, but exploration, permitting, and construction take years, while existing mines face ore-grade declines.
Gold fell over 1.37% on Wednesday, slipping below $4,600, after US inflation data aligned with estimates and raised the likelihood of a Federal Reserve rate hike in December 2026.
The Washington Agreement on Gold was a coordinated commitment by central banks to limit gold sales, aimed at stabilising the market and preserving the metal's monetary role.
The gold standard linked currencies to gold for centuries, but its rigidity led to its abandonment in favour of fiat money.
Gold price stalled near $4,700 after a strong rally from $4,300. Sellers have appeared, with immediate support at $4,465 and a possible test of $4,510.
Gold and silver futures edged higher on the MCX on Wednesday as market participants looked ahead to the US PCE inflation report for signals on the Federal Reserve's interest rate outlook.
Gold prices held steady as investors focused on upcoming US inflation data for clues on the Fed's interest rate path. Other precious metals edged higher amid global economic concerns.
Gold has rallied 15% in August, supported by renewed ETF inflows, strong central bank buying, US rate expectations, Treasury buybacks and a weaker dollar.
Gold jewellery prices exceed the value of the gold itself due to making charges, wastage, design complexity, labour, brand markups, and taxes.