Gold prices slide as investors await Fed policy signals

Gold prices extended their downward trajectory on Monday, with the precious metal falling sharply on the Multi Commodity Exchange (MCX) amid cautious sentiment ahead of crucial remarks from US Federal Reserve leadership. Spot gold declined 0.5% to $4,576.30 per ounce in international markets, while domestic prices dropped by more than Rs 1,000 per unit.

The decline marks the third consecutive session of losses for the yellow metal, with prices shedding approximately 3% over the four-day period. Market participants have adopted a risk-averse stance as they await key economic signals, particularly from Federal Reserve Chair Kevin Warsh's scheduled speech at the Jackson Hole Economic Symposium, where policymakers traditionally provide forward guidance on monetary policy.

Gold's sensitivity to interest rate expectations continues to weigh on investor sentiment. Higher US interest rates typically reduce the appeal of non-yielding assets like gold, prompting traders to reassess their positions ahead of potential policy announcements that could influence global financial markets.

Analysts expect volatility to persist in the near term as market participants digest commentary from Federal Reserve officials and assess the implications for global monetary policy trajectories. The movement underscores gold's role as a barometer for broader economic sentiment and investor risk appetite in international markets.