Gold Price Down By Rs. 500 Today: Why Are The Gold Rates Falling In September?

Gold rates are falling in India, on weak global cues in September. Since the US Federal Reserve Chair Jerome Powell has mentioned that the central bank will continue its restrictive policy measures, the markets are reacting negatively. Investors are anticipating that Fed can raise its rate by up to 75bps. Today, stock markets and commodity markets have been sharply down globally. Showing the same trend, today, on September 1, the yellow metal fell by Rs. 500-540/ 10 grams. The 22-carat gold rate stood at Rs. 46,500/10 grams, and 24-carat gold rate stood at around Rs. 50,730/10 grams. Additionally, a sharp rise in US Dollar Index also pulled the gold prices down today. US Dollar hit a fresh 52-week high today at 109.98.

Soon, the US employment data will be published by the Labour Department. Investors are also waiting for that. Fed Chair also mentioned that further rate hikes will depend on the upcoming economic data, the employment report will be one of the most significant of all of them.

Today, the Comex gold futures were quoted at $1,707.60/oz, falling by 1.08%, from the last trading day. Yesterday it was last quoted at $1,726.20/oz. The yellow metal fell by 7.19% this year in the futures market.

The commodity analysts at TD Securities are having a bearish outlook for gold. "Precious metals are on the brink. With every tick lower in gold prices, odds of a major capitulation event are growing, which could coincide with a break below a multi-decade uptrend in the yellow metal near $1675/oz...While the hawkish Fed narrative has driven money manager positioning to multi-year lows, gold markets still feature an extremely concentrated and bloated position held by a small number of family offices and proprietary trading shops. Further, we see risks that this position is somewhat complacent, given it does not appear to be associated with a stagflationary Fed narrative, but was rather accumulated during 2020," the analysts stated, as reported by Kitco News.