Gold price outlook: Gold prices witnessed a sharp sell-off this week as rising crude oil prices, a stronger US dollar and elevated US Treasury yields weighed on bullion. Renewed inflation concerns and expectations of tighter US monetary policy further pressured precious metals, leading to declines in both MCX futures and retail gold prices in Chennai.
Over the week, MCX gold futures fell around 3.50%, with heavy selling pulling prices down from their previous highs. In Chennai, retail gold prices dropped 3.85%. The price of 24K gold fell by ₹5,560 per 10 grams, from ₹1,48,190 to ₹1,42,480.
On Friday alone, MCX gold futures declined 0.92%, falling ₹1,315 to settle at around ₹1,41,994 per 10 grams.
In Chennai, retail gold prices dropped 1.32% on Friday. The price of 24K gold fell by ₹190 per gram to ₹14,248, while 22K jewellery gold declined by ₹175 per gram to ₹13,060.
Globally as well, gold prices have come under intense pressure as surging crude oil prices, Bullion fell to a three-month low on Friday and was heading for its steepest weekly decline in more than four months, putting the psychologically important $4,000-an-ounce mark in focus ahead of the US Federal Reserve’s October 27-28 policy meeting.