Gold Futures Extend Losing Streak To ₹1.5 Lakh Per 10 Gm As Firm US Dollar Weighs On Bullion

Gold futures extended their slide for a fourth straight session on Thursday, declining ₹833 to ₹1.5 lakh per 10 grams, as a soaring US dollar and a bearish global trend kept investors away from the precious metal.

On the Multi Commodity Exchange, the yellow metal futures for October delivery fell by ₹833, or 0.55%, to ₹1,50,466 per 10 grams.

“MCX gold has continued its negative momentum due to a stronger US dollar and Treasury yields," said Aamir Makda, Commodity & Currency Analyst - Technical Research at Choice Broking.

The pressure on gold intensified after stronger-than-expected US private sector employment data raised inflation concerns and strengthened expectations of further interest rate hikes by the Federal Reserve, Makda said.

In the global market, Comex gold futures for December delivery slipped $17.93, or 0.42%, to $4,300.47 an ounce in New York.

“Gold is hovering around $4,300 an ounce in global trade, after a sharp fall in the previous session as a stronger dollar and surging Treasury yields squeeze the metal,” said Ashish Rajodiya, Head of Commodities at PL Capital.

The dollar index climbed to the 101-mark, its highest level in nearly two months, while the US 10-year Treasury yield inched closer to 5.11%, its highest since July 2007, after stronger-than-expected private sector data reinforced the case for further policy tightening, he added.

The rate outlook is increasingly competing with geopolitical risks for influence over bullion.

Iran President Masoud Pezeshkian warned in his UN General Assembly address that Tehran would not allow freedom of navigation through the Strait of Hormuz while sanctions remain in place.

“With the Fed's tightening path now the dominant driver, the next test for gold is whether upcoming US data keeps running hot,” Rajodiya said.

Another strong reading could push gold towards the $4,200 level, while signs of a cooling labour market or a fresh escalation in the Gulf region could quickly bring buyers back, he added.