Gold Price Drops Rs 2,000 on MCX After Fed Rate Hike

The price of gold on the Multi Commodity Exchange (MCX) dropped by nearly Rs 2,000 after the Federal Reserve's rate hike announcement. The October 5 contract opened at Rs 1,50,513 per 10 grams, down from its previous close of Rs 1,52,470. This represents a fall of 1.28%.

Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted that the rise in interest rates has increased the appeal of interest-bearing assets, putting downward pressure on gold prices.

The COMEX gold price also fell by 0.76% to around USD 4,320.1 per troy ounce in the international market.