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GOLD RETREATS FROM HIGHS AMID PROFIT TAKING, DOLLAR STRENGTH

Published on Oct 25, 2024 15:02

Gold futures dropped sharply in Asian electronic trades today as traders booked profits after a rally above $2770 earlier this week. The strengthening US dollar weighed on gold and other dollar-denominated assets, with the dollar index holding near 104 and on track for a fourth weekly gain. This strength reflects tempered expectations for significant Fed rate cuts and rising support for former President Trump�s second-term bid. Recent US data also boosted the dollar, with a sharp decline in unemployment claims and an increase in S&P PMI, signaling economic resilience. Still, supporting gold�s broader upward momentum are Middle East tensions, concerns over potential conflict escalation, and uncertainties surrounding the US election and central bank easing. On MCX, December bullion futures fell below ₹78,000, down more than ₹400 per 10 grams.

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