Gold Falls For The 5Th Consecutive Day To Hit Ksh 74,652.01
Gold prices remained weak today with MCX futures edging lower to 74,652.01 shillings per 10 grams as the precious metal…
Gold prices remained weak today with MCX futures edging lower to 74,652.01 shillings per 10 grams as the precious metal declined for the fifth straight day.
In international markets, gold slipped as US inflation data boosted the possibility of another jumbo-sized Federal Reserve interest rate hike next month
International gold prices stood at 202,177.71 shillings per ounce as traders remained cautious stance ahead of key US inflation data. A stronger reading would be negative for gold, say, analysts.
Gold prices have declined more than $350 in international markets since surging to the $ 2,000 mark in March, amid aggressive U.S. monetary policy tightening. Domestic gold rates, on the other hand, have dropped over 1,472.67 shillings in the past five days.
The price in Kenya as of 14th October 2022 is 6,430.8 shillings per gram. The 10 grams gold rate is64,308.2 shillings.
Though the yellow metal is considered an inflation hedge, and economic uncertainties, rising rates reduce the non-yielding metal’s appeal.
Moreover, monetary tightening by the Fed and consequent rise in bond yields have pressured the precious metal since the metal yields no interest.
Also on the focus of market participants are new Covid restrictions in China, the top gold consumer in the world.
Minutes of Fed officials’ latest meeting suggested that they needed to raise interest rates to a more restrictive level, and then maintain them there for some time to meet their goal of lowering “broad-based and unacceptably high” inflation. Fed officials have hiked by 75 basis points at their last three meetings.
Although bullion looks vulnerable to more downside amid FOMC minutes and inflation data, geopolitical tensions and global slowdown concerns might support the prices at lower levels.
On the price action front, $1660 per ounce would act as good support whereas resistance is pegged near $1694 per ounce, above which the bulls might once again regain strength to push it further higher.
Meanwhile, Silver futures edged higher to 84,198.85 shillings per kg, while Spot silver fell 0.3 percent to 200,955.10 shillings per ounce.