Gold Market
Crude oil posted its first weekly decline in three weeks as improved flows through the Strait of Hormuz eased supply fears. Brent fell over 5%, WTI over 4%. The move has implications for gold.
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 and silver prices opened lower on the MCX on Tuesday, pausing a rally, as markets turned cautious ahead of US inflation data and a speech by Fed Chair Kevin Warsh at Jackson Hole.
Gold prices extended gains to a three-month high above $4,636 as investors focused on upcoming US inflation data and Federal Reserve Chair Kevin Warsh's speech at Jackson Hole.
Gold is set for its third consecutive weekly gain after the US Treasury's unexpected buyback of long-dated debt highlighted concerns over government borrowing costs. Bullion traded around $4,530 an ounce.
Spot gold and silver could break their 2026 highs if prices remain above $4,500 and $67.00 for the next ten trading sessions, according to Asian metals market commentary.
Veteran investor Rick Rule says the US dollar could lose 75% of its purchasing power in ten years, making a five-digit gold price plausible. He views gold as wealth insurance.
Gold fell on the MCX but rose internationally as Treasury yields eased. Rising oil prices and inflation concerns limit rate cut expectations. Experts view the correction as a buying opportunity.
Real interest rates determine the opportunity cost of holding gold, making them a powerful driver of its price.