Gold Falls on Hawkish Fed Stance and Inflation Data

Gold prices dipped sharply in India on Friday, falling nearly 1.86% due to higher-than-expected inflation data and a hawkish stance from the US Federal Reserve under Chair Kevin Warsh.

The MCX gold futures expiring in October dropped 1.63%, while silver futures for September shed 1.66%. The price of 10 grams of 24-carat gold stood at Rs 1,59,578, down from Rs 1,62,603 seen on Monday at market opening.

The US personal consumption expenditures (PCE) inflation reading came in at 3.7% year-on-year, and strong economic data led to market pricing in a higher probability of the Fed remaining restrictive for longer.