Gold futures fall for fourth session as stronger dollar weighs on prices

• Gold futures fell for a fourth consecutive session on Thursday, with October contracts on the MCX down 0.55 per cent

• Analysts linked the decline to a stronger US dollar, rising Treasury yields and expectations of further Federal Reserve interest rate increases

• Comex December gold futures fell to USD 4,300.47 an ounce; analysts said upcoming US data could shape the next move

Gold futures extended their decline for a fourth straight session on Thursday as a stronger US dollar and rising Treasury yields put pressure on the precious metal.

On the Multi Commodity Exchange, gold futures for October delivery fell Rs 833, or 0.55 per cent, to Rs 1,50,466 per 10 grams. In New York, Comex futures for December delivery slipped USD 17.93, or 0.42 per cent, to USD 4,300.47 an ounce.

Aamir Makda, commodity and currency analyst for technical research at Choice Broking, said gold’s decline reflected the strength of the dollar and US Treasury yields. Stronger-than-expected US private sector employment data had added to inflation concerns and expectations of further interest rate increases by the Federal Reserve, he said.

Ashish Rajodiya, head of commodities at PL Capital, said the dollar index had risen to around 101, its highest level in nearly two months, while the US 10-year Treasury yield was approaching 5.11 per cent. Those moves were weighing on gold after a sharp fall in the previous session, he said.

The outlook for US interest rates is also competing with geopolitical tensions as a driver of bullion prices. Iranian President Masoud Pezeshkian warned in his address to the UN General Assembly that Tehran would not allow freedom of navigation through the Strait of Hormuz while sanctions remained in place.

Rajodiya said another strong US data reading could push gold towards USD 4,200 an ounce. Signs of a cooling labour market or a further escalation in the Gulf region, however, could draw buyers back.

With PTI inputs