Dollar Strength, Hawkish Fed Send Gold Prices Plummeting in India

Gold prices in India took a hit on Tuesday, falling by Rs 914 to Rs 1.52 lakh per 10 grams in futures trade. The decline was attributed to a stronger US dollar and hawkish signals from the Federal Reserve, which fueled expectations of further interest rate hikes.

The MCX gold futures for October delivery initially rose by Rs 403 but later reversed course, falling nearly 1% to Rs 1,52,180 per 10 grams. The dollar index strengthened to around 100.3 following hawkish comments from the Federal Reserve.

'MCX gold prices have extended losses as the dollar index strengthened to around 100.3 following hawkish comments from the Federal Reserve, which reinforced expectations of further interest rate hikes,' said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.