Gold price today: Gold prices slipped by ₹103 to ₹98,593 per 10 grams in futures trade on Wednesday, weighed down by weak spot demand.
On the Multi Commodity Exchange (MCX), October delivery contracts fell by ₹103, or 0.1%, to ₹98,593 per 10 grams, with a trading volume of 14,029 lots.
Meanwhile, in the international markets, spot gold declined 0.4% to $3,317.71 per ounce, after earlier touching its lowest level since August 1 during the session.
What’s behind the plunge?
The dollar index trimmed earlier losses and held steady, while yields on the benchmark 10-year Treasury slipped.
Later this week, the Federal Reserve will host its annual symposium in Jackson Hole, Wyoming, where Fed Chair Jerome Powell is set to speak on Friday about the economic outlook and the central bank’s policy approach.
On the geopolitical side, signs suggest the Russia-Ukraine conflict may be nearing its conclusion. As reported by Reuters, Ukrainian President Volodymyr Zelenskiy described his talks at the White House as a “major step forward” toward ending the war, paving the way for a trilateral meeting with Russian President Vladimir Putin and Trump.
“Gold prices inched lower to their lowest level in nearly three weeks as the dollar strengthened, while investors awaited Fed chair speech at the Jackson Hole symposium later this week. U.S. dollar index climbed to its highest level in more than a week. Meanwhile, USDINR fell below 87, weighing further on domestic prices. U.S. President Trump ruled out deploying ground troops to Ukraine but suggested air support could be part of a deal to end Russia’s war in the region. Ukrainian President Volodymyr Zelensky hailed the White House talks as a “major step forward” towards ending Europe’s deadliest conflict in 80 years and setting up a trilateral meeting with Russian President Vladimir Putin and Trump,” said Manav Modi, Analyst – Precious Metal Research, Motilal Oswal Financial Services Ltd
Can MCX gold rate above ₹1 lakh?
Renisha Chainani, Head – Research at Augmont, gold seems to continue its downward trajectory after sustaining below $3400. Next target is $3340 (~ ₹98500), while $3445 (~ ₹100,500) remains the resistance, Chainani said.
Meanwhile, on the other hand, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, gold is expected to trade with a mildly positive bias within ₹99,000– ₹1,00,000 on MCX and $3,335–$3,360 on Comex.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
