Gold Market
Gold rose more than 1.3% on Tuesday, climbing back above $4,170 after a steep fall in oil prices helped ease inflation fears, even as several Federal Reserve officials struck a hawkish tone.
Gold and silver prices have diverged, with silver losing more ground. The gold/silver ratio sits at 68.4, and upcoming US data could determine whether the trend continues or reverses.
Gold prices dropped around Rs 4,300 per 10 grams over two trading sessions on the MCX, as higher crude oil prices fuelled inflation worries and strengthened the case for additional US Federal Reserve rate increases.
Gold fell more than 3% on Monday after the US rejected an Iranian proposal to ease regional tensions, pushing oil prices higher and reigniting inflation fears that strengthened expectations for a more hawkish Federal Reserve.
Gold and silver prices dropped sharply on MCX as higher oil prices revived inflation concerns and boosted expectations of further US Federal Reserve rate hikes. Rising bond yields and a firm dollar added to the pressure.
Gold prices declined on Monday as a rebound in oil prices heightened inflation concerns and strengthened the case for additional Federal Reserve rate increases.
Gold futures on MCX fell Rs 3,214 per 10 grams and silver dropped Rs 6,661/kg as rising oil prices revived inflation concerns and expectations of further US rate hikes.
Gold has fallen almost a quarter from its January high as US Treasury real yields rise. The metal is competing with bonds that now pay more above inflation, and the trend may continue until the Fed stops raising its rate forecasts.
MCX gold dropped ₹3,500 per 10 grams this week, erasing recent gains, after US Treasury yields touched 19-year peaks and the Federal Reserve signalled further rate increases.