Gold Dips Amid Global Tensions and Dollar Strength
Gold prices have decreased nearly 1% due to a strong US dollar and increased crude oil rates. Geopolitical tensions and inflation concerns continue to influence the market, with global central banks signaling potential interest rate hikes. Investors are watching economic data for future monetary policy insights.
Gold prices fell by nearly 1% to Rs 1.50 lakh per 10 grams in futures trade on Monday, influenced by weak global trends against a strong US dollar and rising crude oil prices. On the Multi Commodity Exchange, gold set for June delivery dropped Rs 1,149, marking a 0.76% decline in a business turnover of 9,510 lots.
The previous week saw gold depreciate by nearly 1%, closing at Rs 1.51 lakh per 10 grams. According to Gaurav Garg, a Research Analyst at Lemonn Markets Desk, inflation concerns and expectations of higher interest rates have maintained the pressure on gold prices, although geopolitical tensions offer downside support.
In international markets, Comex gold futures for the June contract also saw a decrease of USD 58.7, or 1.26%, reaching USD 4,585.8 per ounce in New York. Analysts highlight the double impact of a strong dollar and rising oil prices keeping the prices low. Investors are focused on economic data from major economies and US jobs indicators for direction on monetary policy and bullion price trends.
(With inputs from agencies.)
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