Gold Futures Drop Rs 914 to 1.52 Lakh on Strong Dollar
MCX gold contracts fell nearly 1 percent as a stronger dollar and hawkish Fed comments weighed on prices.
Key points
- MCX gold futures fell Rs 914 to Rs 1,52,180 per 10 grams, erasing early gains.
- The US dollar index strengthened to 100.3, pressuring gold prices globally and locally.
- Comex gold dropped USD 28.45 to USD 4,355.45 as investors awaited Fed official speeches.
Gold futures in India fell by Rs 914 to close at Rs 1,52,180 per 10 grams. This nearly 1 percent decline reversed an earlier intraday gain of Rs 403 on the MCX.
The price drop followed a strengthening US dollar index that reached approximately 100.3. Hawkish remarks from Federal Reserve officials reinforced expectations for continued interest rate hikes.
Dollar strength drives domestic selloff
Investors reacted cautiously as the dollar index climbed higher on Tuesday. This currency strength made gold less attractive for holders of other assets.
Although the US 10-year yield eased to 4.95 percent, it did not offset the pressure from the dollar. The market remained focused on monetary policy signals rather than bond yields.
Global benchmarks mirror local weakness
Comex gold futures for December delivery declined by USD 28.45 per ounce. The contract settled near USD 4,355.45, reflecting similar sentiment in New York markets.
Overseas trade saw gold hovering around USD 4,350 an ounce on Tuesday. Traders awaited fresh clues on the central bank’s path before committing to new positions.
Upcoming data tests policy stance
Fed officials including John Williams and Philip Jefferson are scheduled to speak later in the day. Their comments will provide critical guidance on future monetary decisions.
Market participants also await ADP employment data for additional economic signals. As reported by Deccan Chronicle, these cues will determine if gold stabilizes or extends losses.
