India Gold Prices Drop Amid Rupee Appreciation, US Fed Expectations

Gold prices in India have been under pressure in recent days due to the appreciation of the rupee, causing them to dip nearly Rs 5,000 per 10 grams over four sessions. According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold was at Rs 1,58,226 on August 21, down from Rs 1,58,386 on Thursday.

The MCX Gold futures contracts for October expiry opened lower but rebounded to be down just 0.04 per cent at Rs 1,58,835 per 10 grams as of 12:35 pm. In contrast, the MCX Silver September contracts gained 0.82 per cent or Rs 2,023 to Rs 2,42,674 per kg.

Investors are awaiting remarks from US Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium, which may impact interest rates and subsequently gold prices. The markets have cut the chance of a US rate hike in September to about 36 per cent according to the CME FedWatch Tool, while keeping the probability of a December hike near 72 per cent.