Gold Falls as Hawkish Signals from Fed Reinforce Higher Interest Rates Expectations

The price of gold settled down 0.25% at Rs1,52,716 due to hawkish signals from Federal Reserve policymakers that reinforced expectations of higher interest rates for longer.

Fed policymakers including Alberto Musalem and Austan Goolsbee indicated further tightening may be required to contain inflation driven by strong demand and rising energy prices.

Despite monetary policy headwinds, gold continues to receive structural support from central-bank buying and geopolitical uncertainty.