Gold Prices Fall in India as US Rate Hike Expectations Rise
Gold prices in India dipped on Monday as stronger-than-expected US jobs data increased expectations of a Federal Reserve rate hike. This typically weighs on gold, which does not provide interest income.
The MCX October gold futures traded around ₹1,52,274 per 10 grams, down about ₹493 or 0.32% from the previous close. Spot gold also remained under pressure, with international spot gold falling 0.7% to $4,398.13 per ounce and US gold futures declining 0.7% to $4,443.60.
The city-wise gold rates showed that Delhi quoted ₹1,54,940 per 10 grams, while Chennai remained the most expensive among the listed cities at ₹1,56,660 per 10 grams. The strong US jobs data increased expectations of a September Fed rate hike to 58.4%, up from 55% before the report.
Higher oil prices can also increase inflation and reduce the appeal of gold if they push interest rates higher. Meanwhile, geopolitical tensions continue to create safe-haven demand, limiting the downside for bullion.