MCX Gold Falls Amid Caution Ahead of US Fed Meeting, Rate Hike Expectations Rise

Gold prices on MCX declined by 0.25% to Rs. 1,41,275 on July 29 due to caution ahead of the US Federal Reserve's monetary policy decision. August gold futures fell while September silver futures rose 0.32% to Rs. 2,16,530.

US West Texas Intermediate (WTI) crude oil prices edged higher by 4.21% to $82.60 per barrel, and Brent crude futures gained 4.27% to $87.68 per barrel.

According to the CME FedWatch Tool, traders now expect a 76% chance of a September rate hike by the US Federal Reserve.

Kelvin Wong, a senior market analyst at OANDA, said that 'Gold is very much connected to today's FOMC meeting.... The scenario that may see a potential reversal of the recent bearish bias in gold prices will be the Fed turning to a less hawkish rhetoric.'