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Gold Pulls Back as MCX Futures Fall for Fourth Straight Session

Firmer US dollar plus higher Treasury yields have reduced demand for non-yielding gold ahead of Fed Chair Kevin Warsh's Jackson Hole speech.

Overview

  • MCX October gold futures fell about Rs 5,318 over four trading sessions to roughly Rs 1,58,100 per 10 grams as losses extended into a fourth day.
  • International spot gold slipped to the mid-$4,500s per ounce, and domestic retail rates eased on Raksha Bandhan with notable city-by-city spreads for 24K gold.
  • Analysts point to a stronger dollar, rising US Treasury yields and investor caution ahead of Kevin Warsh's Jackson Hole remarks as the immediate reasons for the pullback.
  • Silver diverged from gold by rebounding nearly 2 percent on the MCX to about Rs 2.44 lakh per kilogram as weaker crude oil and easing inflation pressure supported bullion demand.
  • Local pricing rules drove varied outcomes across markets, including a Rs 3,500 drop in Pakistan's tola rate, and consumers face different final bills because GST, making charges and dealer premiums are added to exchange benchmarks.