Overview
- Global futures and spot prices extended a multi‑session decline on Thursday, with Comex December futures near $4,250 an ounce and MCX October contracts down to about Rs150,466 per 10 grams.
- Traders and analysts said a stronger US dollar and rising US Treasury yields are the main drivers because they make dollar‑priced, non‑yielding gold less attractive compared with interest‑bearing assets.
- Market pricing now shows a materially higher chance of a Fed rate hike in October, and that shift in expectations tightened financial conditions and weighed on bullion demand.
- Rising crude oil and recent incidents in the Gulf have pushed oil prices higher, which adds inflation risk that can support safe‑haven buying even as it also reinforces expectations of tighter central‑bank policy.
- The international pullback quickly reached local markets: Indian retail quotes slipped to about Rs152,400 per 10 grams and Pakistan’s APGJSA posted Rs448,336 per tola while the State Bank of Pakistan reported SBP reserves at $21.4 billion.