Gold Prices Plummet on MCX Amid Rising US Dollar

The price of gold on MCX fell by 0.54% to Rs. 1,54,935 per 10 grams due to profit booking amid a rise in the US dollar and bond yields. This move was seen despite investors awaiting US payrolls data for clues on the US Federal Reserve's next policy decision.

The CME FedWatch Tool indicates that markets are currently pricing in a 49.8% probability of keeping rates unchanged and a 50.2% chance of a rate hike in September. This has caused some uncertainty among investors, with gold prices fluctuating in response.

Ross Maxwell, global strategy operations lead at VT Markets, noted that weak figures and rising unemployment could weaken the case for a rate hike, which could in turn strengthen gold's position.