Gold Price / Gold Slips Below $4,000 as Crude Surge Fuels Inflation Fears
Key Points
Gold and silver plunged this week as crude oil surged, sparking inflation fears. Gold slipped below $4,000 per ounce, while silver faced steep losses amid global risk aversion and margin calls.
New Delhi, Oct 24: Global bullion markets came under heavy pressure this week as inflation worries, fuelled by surging crude oil prices, triggered a broad selloff in precious metals.
Investors rushed to cut exposure, driving gold to its sharpest weekly fall since June and pushing silver into one of its steepest corrections in recent months.
The downturn saw gold prices tumble below the $4,000 per ounce mark for the first time since mid‑July, a level analysts described as “psychologically important.”
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✨Silver, meanwhile, faced even sharper losses, reflecting both global risk aversion and spillover weakness from US technology stocks.
The combined impact of energy market shocks, currency volatility, and tightening monetary policy expectations has left traders bracing for continued turbulence across the bullion space.
On Friday, MCX gold futures expiring in December dropped 0.81 per cent to ₹1,42,150, while silver futures for December delivery shed 1.75 per cent to ₹1,96,100 per kg.
The selloff in silver was aggravated by weakness in US technology stocks, particularly AI‑linked companies, which triggered margin calls and forced investors to liquidate precious‑metal holdings.
Meanwhile, crude oil surged to multi‑month highs following renewed attacks on Saudi energy infrastructure and shipping routes. The Indian rupee also surrendered its early‑week gains amid rising oil prices and renewed dollar demand.
Despite the correction, lower prices encouraged physical gold buying in India during the Dussehra festival, offering some support, though Chinese jewellery demand remained subdued.
Market participants caution that precious metals may remain under pressure if elevated energy prices reinforce inflation fears and expectations of tighter monetary policy. However, physical demand and any moderation in bond yields could provide relief.
Traders largely expect the US Federal Reserve to keep interest rates unchanged at its October 27-28 policy meeting, though expectations of another hike in December remain strong, with markets pricing in a 78 per cent probability.
Analysts placed immediate resistance for Comex Gold at the $4,070–$4,100 zone, with support at $3,970–$4,000. For MCX Gold, resistance is seen at ₹1,43,000–₹1,43,700, while support lies between ₹1,40,000–₹1,41,000.
(IANS)