Gold prices saw robust selling last week in response to China’s weak demand for real gold. The COMEX gold market saw a 4.50 percent loss last week, while the yellow metal price in India saw a greater decline as a result of price adjustments following the news of a 9 percent reduction in customs duties on gold and silver.
The price of gold on the Multi Commodity Exchange (MCX) fell by around 9% from its peak on July 17th, when it was trading at ₹74,731 per 10 gm. Nonetheless, Friday’s US PCE inflation statistics showed modest improvement in the yellow metal.
Experts in the commodities market claim that the announcement of a reduction in customs duties on gold and silver in the 2024 budget put pressure on gold prices in India. The slow demand inflicted the remaining harm to the physical gold in China. Global gold prices saw a significant correction as a result of this.
However, selling in India was more aggressive than in other international markets due to the price change following Budget 2024. However, they anticipated a strong recovery following Friday’s declining US inflation statistics. Experts surmise that US PCE inflation has contributed to the talk of a US Fed rate drop at the central bank’s September meeting.
