Mumbai, Aug 28: Gold prices remained under pressure on Friday, extending their decline for a fourth straight session as investors turned cautious ahead of Federal Reserve Chair Kevin Warsh’s closely watched address at the Jackson Hole Symposium.
On the Multi Commodity Exchange (MCX), gold futures for October delivery fell Rs 896, or 0.56 per cent, to Rs 1,58,100 per 10 grams. The contract touched an intraday low of Rs 1,57,911 during the session.
The latest decline has taken the total fall in MCX gold to Rs 5,318, or 3.25 per cent, over four trading sessions, marking a significant correction after the metal’s recent rally.
Gold also weakened in overseas markets. Spot gold was down around 0.5 per cent at about $4,580 an ounce, while US gold futures also moved lower.
The main focus for investors is now on Warsh’s Jackson Hole speech. Market participants are looking for clues about the Federal Reserve’s approach to inflation and interest rates. A more hawkish stance could push bond yields and the US dollar higher, potentially putting additional pressure on gold.
Gold does not generate interest income, so expectations of higher-for-longer interest rates can reduce its appeal compared with yield-generating assets. Conversely, signs of easier monetary policy could support demand for the precious metal.
The recent decline follows a strong run in gold prices earlier this week, when the metal reached its highest level in several months. Investors are now reassessing positions after the sharp rise and waiting for fresh direction from US monetary-policy signals.
The dollar and US Treasury yields will also remain important for gold prices. Movements in either market can quickly influence investor demand for the precious metal.
For Indian investors, global gold prices, the rupee-dollar exchange rate and international interest-rate expectations are likely to remain the key factors determining domestic prices in the near term.
With gold now facing its fourth consecutive session of losses, traders will be watching closely for signs of stabilisation. A sustained recovery could revive buying interest, while continued weakness may lead to further profit-taking in the short term.
The broader outlook remains closely linked to the Federal Reserve’s policy signals and developments in global markets