US Dollar Strength Weighs Down Gold Prices Amid Cautious Fed Stance
Gold and silver futures declined on Thursday as investors weighed in on a firmer US dollar and the Federal Reserve's cautious stance on interest rates. The stronger dollar and steady Fed policy put downward pressure on precious metals.
The MCX gold futures for August delivery fell ₹181, or 0.13%, to ₹1,41,600 per 10 grams after early gains were given up. Meanwhile, the October contract declined ₹252, or 0.18%, to ₹1,43,031 per 10 grams.
Comex gold futures for August delivery slipped marginally to $4,031.70 per ounce in overseas markets.
Deveya Gaglani, Senior Research Analyst, Commodities at Axis Direct, attributed the decline in gold prices to a stronger US dollar and the Fed's cautious policy stance outweighing inflation concerns arising from renewed tensions in West Asia.