Gold Prices Plummet as Fed Hawkishness Boosts Dollar

Gold futures declined in India's MCX market after the US Federal Reserve signaled potential further interest rate hikes, causing the dollar to strengthen. The price of gold for October delivery fell by Rs 914, or nearly 1%, to Rs 1,52,180 per 10 grams, reversing an earlier gain. This decline was also reflected in global markets, where Comex gold futures for December dropped $28.45, or approximately 1%, to $4,355.45 per ounce.

Kaynat Chainwala of Kotak Securities noted that investors were awaiting comments from Federal Reserve officials for fresh clues on the central bank's monetary policy. The ADP employment data is also expected to provide further cues on the US economy and monetary policy.