Indian Gold Prices Drop as Markets Weigh Fresh US Data

Gold prices in India settled down 0.42% at ₹158,996 as investors assessed fresh US economic data for clues on the Federal Reserve's interest-rate path.

The data showed that the US PCE price index rose 0.2% in July, above expectations of 0.1%, while annual inflation accelerated to 3.7% against forecasts of 3.6%

As a result, markets priced around a 60% probability of the Fed leaving interest rates unchanged next month, limiting near-term support for gold.

In India, physical demand remained subdued due to higher prices near three-month highs, with dealers offering discounts of up to $65 an ounce over official domestic prices compared with $62 previously.