Partner With Us NRI

Gold Crashes To $1890 Dictated by High Dollar

Published on Sep 28, 2023 14:52

Gold prices plummeted to nearly $1,890 per ounce, marking their lowest level since March 2023. This sharp decline was driven by a robust US dollar and rising Treasury yields, influenced by expectations of higher interest rates. The US dollar surged to its highest point in ten months against a basket of global currencies, while the 10-year US yield reached its highest levels since 2007.

Despite this, gold`s status as an inflation hedge may provide some support, as it typically performs well during periods of high inflation. The US Federal Reserve`s recent announcement of the potential for another rate hike before year-end and fewer rate cuts in the coming year further weighed on gold prices. Minneapolis Fed President Neel Kashkari also indicated a significant likelihood of higher interest rates to combat inflation.

Investor attention now turns to key economic indicators, including US GDP, weekly jobless claims, and the Fed`s preferred PCE price index report, which could offer further insights into the economic landscape. In the Indian context, MCX October futures dipped below Rs 57,500 per 10 grams, with potential support expected around Rs 57,000 levels.

Powered by Capital Market - Live News