Gold Prices Plummet as Investors Await US Fed Decision

Gold and silver prices declined on Tuesday due to investor caution ahead of the US Federal Reserve's monetary policy announcement.

A stronger US dollar also weighed on sentiment in the precious metals market, causing gold futures for August delivery to fall by Rs 1,213, or 0.85 percent, to Rs 1,41,850 per 10 grams on the Multi Commodity Exchange (MCX).

Market participants stayed on the sidelines ahead of the US Fed's policy decision due on July 29, resulting in subdued buying interest and further adding pressure on bullion prices.

Gaurav Garg, Research Analyst at Lemonn Markets Desk, stated that the appreciation in the US dollar coupled with investor caution weighed on gold prices.

Although geopolitical developments provided some support to bullion, preventing a steeper decline, analysts believe precious metals could remain volatile in the near term as markets react to the outcome of the US Federal Reserve's policy meeting and any signals on the future path of interest rates.