Gold Prices Plummet on Stronger Dollar and Higher Treasury Yields

Gold futures on the Multi Commodity Exchange (MCX) declined for a fourth consecutive session, falling by ₹833 or 0.55% to ₹1,50,466 per 10 grams.

This drop brings prices close to the ₹1.5 lakh mark, with Aamir Makda, Commodity and Currency Analyst at Choice Broking, attributing it to a stronger US dollar and higher US Treasury yields.

The stronger-than-expected US private sector employment data has raised concerns that inflation may remain difficult to contain, leading to expectations of further interest rate increases by the US Federal Reserve.

A firmer dollar makes dollar-priced bullion costlier for buyers using other currencies, while higher yields make gold less appealing to investors as it does not pay interest.