Global Gold Market Update: Weekly Decline Reaches 11%

Key Statistics:

• Gold price: $4,508.96 per ounce (down 3.1% on Friday)
• Weekly decline: 11% (steepest since 1983)
• US dollar index: Rising, contributing to gold's decline
• US Treasury yields: Increasing, further reducing gold's appeal

Market Analysis:

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The global gold market experienced a sharp decline last week, with prices falling 11% as escalating conflict in the Middle East pushed energy prices higher and dampened expectations of interest-rate cuts. The US dollar's strengthening, coupled with investors offloading stocks and bonds due to concerns about inflation, has contributed to the decline. The ongoing US-Israeli conflict with Iran has resulted in thousands of casualties, weighed on the global economy, and kept energy prices elevated.

Market Trends:

• Bullion-backed ETFs: On track for a third consecutive week of outflows, with holdings declining by over 60 tonnes
• Gold prices: Still up around 4% so far this year, despite recent correction
• Technical outlook: COMEX Gold trading in the $4,450-$4,520 range, with immediate support at $4,250-$4,400

Expert Insights:

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• Ponmudi R, Enrich Money CEO: Precious metals are under pressure, with a selective buy-on-dips strategy near strong support zones preferred
• Jateen Trivedi, LKP Securities VP Research Analyst: Broader sentiment remains weak, with key macro triggers unfavorable, and interest rates expected to stay elevated

Market Outlook:

The broader bullish bias remains intact, but sustaining above the $4,400 level is critical for a potential recovery. Ongoing geopolitical tensions and elevated interest rates are expected to keep gold prices weak, with heightened volatility and a near-term trading range seen between ₹140,000-₹147,000.