Gold Prices Plunge Amid Stronger Dollar

Gold prices took a hit this week, dipping 1.16% due to a firmer dollar and higher US Treasury yields. Despite this, MCX gold August futures managed to gain 0.06% on Friday, while MCX silver September futures fell by 1.13%. The current price of gold futures stands at Rs 1,41,599 per kg, with silver futures trading at Rs 2,17,488 per kg.

According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold dropped to Rs 1,42,860 on Friday, down from its opening price of Rs 1,44,532 on Monday. The precious metals complex remained volatile throughout the week, with bullion briefly rallying around 2% after the US Federal Reserve left interest rates unchanged.

However, the dollar softened later in the week, allowing gold to extend its gains into Thursday. Analysts note that silver was relatively steady, trading within a narrow range, while investors await fresh macroeconomic catalysts and clarity on the Federal Reserve's policy path. The Fed's hawkish stance has reduced expectations of near-term rate cuts, pushing the implied probability of a September rate hike to roughly 63%.