Gold Price Plummets Below ₹1.48 Lakh on MCX Amid Stronger Dollar

Gold prices dropped sharply on Monday as it fell below ₹1.48 lakh on the Multi Commodity Exchange (MCX). The October gold futures contract declined by 2.13% or ₹3,214 to ₹1,47,667 per 10 grams.

The decline in gold prices was not limited to India, as international markets also saw a drop. Comex gold fell about 2.1% to $4,197.40 an ounce, while silver slid 3.59% to $62.47.

Experts attribute the fall in gold prices to a stronger US dollar and rising US bond yields. This makes other assets more attractive, causing gold to struggle.

The situation is further complicated by the ongoing talks between the US and Iran, which have stalled. The uncertainty surrounding crude oil prices has raised concerns about inflation, making it harder for the Federal Reserve to cut interest rates.

For Indian buyers, the weak rupee provides some cushion, as a weaker currency makes imported gold costlier in rupee terms. However, retail buyers should note that MCX prices do not reflect the GST, making charges and local premiums added by jewelers.