Gold prices eased on both domestic and international markets as investors weighed rising crude oil prices and the outlook for interest rates, according to a post by ET NOW on Instagram. On the Multi Commodity Exchange (MCX) in India, gold slipped 0.42% to Rs 1,47,300 per 10 grams, just days before Dhanteras and Diwali, festivals when gold demand traditionally rises in India. In the international market, spot gold fell 0.3% to $4,128.92 per ounce, while US gold futures for December delivery declined 0.3% to $4,148.50, the post said.
The post linked the decline to a rise in crude oil prices, driven by fresh geopolitical tensions in the Middle East. Higher oil prices raise concerns that inflation could remain elevated. Persistent inflation could make central banks more cautious about cutting interest rates, which puts pressure on gold because the metal does not offer interest income.
Investors are also watching the US Federal Reserve's meeting scheduled for October 27-28 for clues on the direction of its monetary policy. According to ET NOW, oil prices and interest rate expectations are both influencing bullion, and festive-season buyers in India are expected to monitor price movements closely. Source: ET NOW, Instagram post (instagram.com/p/DetczIYjOb3).
Source: instagram.com