Gold Prices Slide Below Rs 1.55 Lakh on Profit Booking and Fed Rate Hike Easing

The gold market experienced a decline in India on Tuesday, with prices slipping below Rs 1.55 lakh per 10 grams on the Multi Commodity Exchange (MCX). The decrease was attributed to profit booking by investors following a sharp rally in the previous session.

Despite this, international markets saw gold extend gains, with spot gold rising 0.2% to USD 4,424.28 an ounce. This increase was due to eased expectations of a US Federal Reserve rate hike, as market pricing showed a 65% probability of keeping rates unchanged.

The domestic decline in gold prices was also influenced by profit booking, with investors cashing out after the recent rally. The MCX gold futures for October delivery fell around 0.6%, or Rs 945 per 10 grams, to Rs 1,54,995 in morning trade.