Commodities
Gold Price Tumbles in India as US Rate Hike Expectations Rise
The gold price in India fell to Rs 15,676 per gram for 24K gold and Rs 14,369 per gram for 22K gold, down from yesterday's prices. The decline follows hawkish comments from US Federal Reserve Chair Kevin Warsh, which boosted expectations of a US interest-rate hike and pressured non-yielding assets including gold.
The combination of higher expected US rates and dollar strength has been the dominant driver behind gold's pullback from its recent highs. Despite this two-day pullback, gold's structural demand drivers, including central bank buying and steady Indian festive and wedding season demand, remain intact.