Gold Prices Tumble ₹773 in India Amid Hawkish Fed Commentary

Gold prices in India fell ₹773 per 10 grams on the Multi Commodity Exchange (MCX) to ₹1.53 lakh per 10 grams for October delivery, while silver futures declined by ₹2,024 or 0.84% to ₹2.39 lakh per kg for December delivery.

The decline comes as investors reassess their outlook on US interest rates and bond yields following the Federal Reserve's policy decision last week. Hawkish commentary from the Fed and inflation concerns have kept yields and the dollar firm, making it less appealing to hold non-yielding assets like gold.

Gaurav Garg, head of research at Lemonn, stated that precious metals are under pressure due to hawkish Fed commentary and elevated inflation concerns keeping yields and the dollar firm. He noted that the dollar was trading around 95.87 against the rupee, while crude oil prices were near $100 a barrel.

Physical demand for gold in India remains steady but measured, with buyers becoming more selective at high price levels. However, consumers may adjust their purchases by spreading them over time rather than making large purchases all at once.