Gold Prices Fall From Record Highs Amid Federal Reserve Rate Hikes
· Business · Times of India, LiveMint
Gold prices are not expected to crash to Rs 1.25 lakh or Rs 1 lakh per 10 grams, though international prices have fallen 26% from their January peak of $5,595 per ounce. Indian gold prices have dropped around 23% from their January highs, while MCX futures fell more than 10% from August peaks of Rs 1,64,773 to around Rs 1,45,991 per 10 grams last week. Spot gold closed near $4,130 per ounce this week following a pullback from its August peak of $4,698. Market factors driving the correction include profit booking, inflation fears stoked by the US-Iran war, and surging US real yields driven by Federal Reserve rate hikes.
Why it matters
Declining gold prices alter investment strategies for retail consumers and institutional investors alike as safe-haven assets lose momentum against rising bond yields.
Read the original report — Times of India
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