Gold prices in India continued their downward trend on Friday, extending losses for the fourth consecutive trading session amid sustained selling pressure in the precious metal.
MUMBAI — Gold prices in India continued their downward trend on Friday, extending losses for the fourth consecutive trading session amid sustained selling pressure in the precious metal.
On the Multi Commodity Exchange (MCX), gold futures for October delivery declined by INR 896, or 0.56 per cent, to trade at INR 1,58,100 per 10 grams. During the session, prices fell as much as 0.68 per cent, or INR 1,085, to touch an intraday low of INR 1,57,911 per 10 grams.
With Friday’s decline, gold prices have fallen by INR 5,318, or 3.25 per cent, over the past four trading sessions on the MCX, reflecting continued pressure on the yellow metal.
In the international market, gold prices also remained under pressure as investors awaited a speech by US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Market participants are closely watching signals from the US central bank on the future course of interest rates, which could influence demand for gold.
Spot gold declined 0.5 per cent to $4,576.30 an ounce after touching a more than three-month high earlier this week. US gold futures were also down 0.8 per cent at $4,629 an ounce.
Experts said that the recent weakness in gold prices comes after a strong rally earlier in the week, with investors now assessing the outlook for US monetary policy and its potential impact on the dollar, bond yields and demand for the safe-haven asset.
"Immediate resistance is at INR 1,59,500 – INR 1,60,000, followed by INR 1,62,000 - INR 1,62,500. Immediate support is at INR 1,57,600 – INR 1,57,000, followed by INR 1,55,500 – INR 1,55,000. RSI at 60.93 remains in positive territory but has declined sharply from the overbought region, signalling a cooling of momentum,” an analyst said.