Gold Price Hits Two Month Low On Soaring US Dollar Rates

Shockingly, Gold hit a two-month low and witnessed a shard dive due to a rise in US Dollar rates. Meanwhile, Gold failed to attract investors and become their haven. Note that the yellow metal even breached its crucial support of $1880 per ounce levels as it ended at $1848 levels on September 29, 2023. For October 2023, the Gold future contract expiry on MCX (Multi Commodity Exchange) ended at Rs 57,096 per 10-gram level. This happened due to the soaring price of US Dollar rates. The continuous surge in the rates of the US Dollar put pressure on the yellow metal, said the experts of the commodity market. If you are also scrambling to web regarding the Gold price, you need to go through this article till the end. Swipe down for more details.

Gold Price

Gold Lost Biggest Ground Since February

In the past six months, Gold lost significant ground as it closed at $1860, its lowest price. On Friday, September, dropped back to $1860, its lowest price. Commodity market experts analyzed Gold’s future and stated, “For as long as the market continues to expect a ‘soft’ landing in the US, no price recovery is likely to happen for now. After all, this would imply that it will take longer for any interest rate cut to be forthcoming. However, because our US experts are more pessimistic and believe that a recession is inevitable, we expect to see more disappointing economic data in the coming weeks. These are likely to put the US Dollar under pressure and thereby lend buoyancy to the Gold price.

Reason for why Gold is under pressure

Executive director and chief strategist at Acme Investment Advisors, Sugandha Sachdeva unraveled the allure of the reason for falling gold prices. He said a rigorous surge in the dollar index towards a ten-month high, driven by increasing concerns over persistently high interest rates in the US, exerted downward pressure on gold prices. Prices even hit the critical support level of $1,880 per ounce and pulled lower. Shockingly, the yellow metal could not attract safe-haven demand even amidst a climate of risk aversion prevailing in the financial markets.

Acme Investment Advisors;s chief strategist also said that at the end of the week, there was a brief resurgence in the prices of gold due to the release of key Personal Consumption Expenditures data that hinted at a moderation in inflationary pressure. US shutdown news is also affecting the gold price. Stay tuned.

Amzad Khan
Amzad Khan

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