Gold Faces Fresh Volatility After Rs 6,000 Weekly Plunge; US Jobs Data, Fed in Focus Gold prices experienced significant volatility as the precious metal posted its largest single-day decline since June 10, driven by renewed selling pressure following remarks from Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Warsh emphasized the need for the central bank to ensure inflation returns to its 2% target, which intensified market concerns about potential rate hikes. This hawkish stance, combined with global economic uncertainties, contributed to a sharp correction in gold and silver markets. The decline in gold prices was further exacerbated by weaker spot demand, with futures contracts on the Multi Commodity Exchange (MCX) falling Rs 2,045 to Rs 1,54,236 per 10 grams. The October delivery contract saw a 1.31% drop, with a business turnover of 2,680 lots. Globally, gold futures in New York declined 0.51% to $4,432.51 per ounce, reflecting broader weakness in the precious metal. Spot gold prices also fell 1% to $4,407.49 per ounce in early trade, marking a near two-week low. Silver prices mirrored gold’s decline, with September futures on the MCX dropping Rs 9,893, or 4%, to Rs 2.36 lakh per kilogram. Internationally, silver futures fell $2.56, or 3.64%, to $67.78 per ounce. Analysts noted that while both metals faced pressure, silver had outperformed gold over August, gaining around 21% compared to gold’s 15.7% rise. However, the weekly correction saw silver prices fall sharply, with futures trade recording a Rs 1,955 decline to Rs 2.40 lakh per kg. The sell-off in gold and silver was influenced by multiple factors, including heightened inflation concerns and geopolitical tensions between the US and Iran.#federal_reserve #mcx #kevin_warsh #us_jobs_data #jackson_hole_symposium
Gold finds support at 100-day SMA near 4,600 Gold is holding steady on Monday, supported by the 100-day simple moving average (SMA) near 4,670, paring losses after Friday’s pullback triggered by robust US jobs data and renewed escalation in the Iran conflict, which dimmed Fed rate-cut expectations. The momentum indicators show bearish pressure easing: the MACD is turning higher above its signal line, though still below zero, while the RSI is flatlining just below the neutral 50 level—signaling that, although selling momentum has cooled, the broader negative bias remains intact. A rebound off the 100-day SMA support could target a key confluence zone where the medium-term ascending trendline meets the 20-day SMA at the 50% Fibonacci retracement of the March 2–23 pullback near 4,578. Then, a sustained recovery above 4,850 would be needed to neutralize the emerging downside bias and open the way back toward the 50-day SMA near 4,944. Conversely, a clean break below 4,600 would expose the 4,550–4,375 range that contained price action in late March, followed by the 200-day SMA near 4,150, just above the 4,000 psychological level. All in all, gold has found some support at 4,600 and is attempting to rebound, but the lack of follow-through buying keeps the near-term outlook bearish. Price remains under pressure below the uptrend line despite repeated attempts to reclaim it. Holding above 4,550 is key in preventing momentum from turning decisively more negative. The Iran conflict and its geopolitical implications have significantly influenced market sentiment, particularly for gold, which is often seen as a safe-haven asset. The renewed tensions have kept investors cautious, limiting conviction in the precious metal’s upward trajectory.#gold #us_dollar #iran_conflict #us_jobs_data #fed_rate_cuts
