Dollar Surge and Fed Hawkishness Sink Gold Prices
New Delhi: Gold prices declined sharply on Tuesday, September 22, due to a strengthening dollar and hawkish signals from the US Federal Reserve. On the Multi Commodity Exchange (MCX), gold futures for October delivery opened at an intraday high of Rs 1,53,497 per 10 grams but later fell by Rs 914 or nearly 1 percent to Rs 1,52,180 per 10 grams.
'MCX gold prices have extended losses as the dollar index strengthened to around 100.3 following hawkish comments from the Federal Reserve,' said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking. The US Federal Open Market Committee (FOMC) members John C Williams and Thomas Barkin, along with Fed Governor Philip Jefferson, are scheduled to speak later in the day.
Gold was trading near USD 4,350 an ounce in overseas trade on Tuesday as investors awaited comments from Federal Reserve officials for fresh clues on the central bank's monetary policy. In global markets, Comex gold futures for the December contract fell USD 28.45 or nearly 1 percent to USD 4,355.45 per ounce in New York.