Gold slips below Rs 1.51 lakh, silver falls nearly 2% on MCX as Fed rate cut hopes fade

Fresh updates from the financial markets indicate that Gold saw a volatile session on September 14 pressured by escalating Middle East tensions, rising crude prices and a stronger dollar, while a 3.4 percent climb in US CPI in August weighed on bullion ahead of the Fed’s policy meeting this month.

Gold futures for the October contract declined 1.38 percent to Rs 1,50,673 per 10 grams on MCX (17:30 IST), while silver futures for the December contract declined 1.95 percent to Rs 2,30,400 per kilogram from its previous close.

Domestic spot gold traded at Rs 1,51,549 per 10 grams (17:02 IST) from its previous close, while silver declined to Rs 2,29,113 per kilogram.

Comex gold eased 1.79 percent to $4,330 per ounce in the morning trade (11:52 GMT), and silver edged 2.77 percent to just above $63 per ounce during the past 24 hours.

According to Nirpendra Yadav, Sr. Market observer at Bonanza Portfolio, spot gold was around $4,307 per ounce, down around 1.8 percent, while the US gold futures were around $4,325 per ounce, down around 1.9 percent.

"The main pressure is coming from stronger-than-anticipated US inflation, a firmer dollar and rising Treasury yields, which have sharply increased expectations of a 25-basis-point Fed interest-rate gain the current week," Yadav stated.

At the same time, the sharp climb in oil price marks amid renewed tensions in the Middle East is raising concerns that inflation could stay elevated, further reducing the attractiveness of non-yielding gold.

According to Yadav, the near-term tone stays wary, with $4,300-$ 4,280 per ounce an important backing level for spot gold. "A sustained break below this level could extend the correction, while holding above it may encourage dip-buying."