Gold extends losses in futures trade amid inflation pressures and West Asia tensions
Futures decline on MCX and Comex as investors factor in sticky inflation, higher-for-longer US interest rates, and ongoing geopolitical uncertainty in the Middle East
India, June 12 — Gold prices continued their downward trend for the fifth consecutive trading session on Thursday, reflecting sustained pressure in both domestic and international markets amid shifting interest rate expectations and geopolitical uncertainty.
On the Multi Commodity Exchange (MCX), August gold futures fell by Rs 277, or 0.19 per cent, settling at Rs 1,47,740 per 10 grams. The decline mirrored weakness in global benchmarks, where Comex gold also extended losses.
Market participants said the metal remained under pressure due to stronger US economic data and persistent concerns that the Federal Reserve may keep borrowing costs elevated for a longer period. Rising energy prices and inflationary signals have further influenced sentiment around future rate cuts.
According to analysts, developments in West Asia, particularly tensions involving the US and Iran, have added volatility but have not been enough to support safe-haven buying. Some easing in immediate conflict fears following signals of de-escalation also contributed to weaker demand.
In global trade, Comex gold for August delivery dropped USD 17.23, or 0.42 per cent, to USD 4,116.07 per ounce in New York, marking its fifth straight session of decline.
Experts noted that while disruption risks in energy supply routes such as the Strait of Hormuz persist, supporting long-term inflation concerns, near-term sentiment is being dominated by expectations of tighter monetary policy.
Recent comments from policymakers and geopolitical leaders have kept investors cautious, with traders now closely watching upcoming US economic indicators for cues on the Federal Reserve’s interest rate trajectory and bullion price direction.
