Dollar Strength and Hawkish Fed Send Gold Prices Plummeting in India

Gold prices declined on Tuesday in India due to a stronger US dollar and hawkish signals from the Federal Reserve, causing investors to become cautious. On the Multi Commodity Exchange (MCX), gold futures for October delivery initially rose by Rs 403 but then reversed course, falling Rs 914, or nearly 1 per cent, to Rs 1,52,180 per 10 grams.

The dollar index strengthened to around 100.3 following the hawkish comments from the Federal Reserve, which reinforced expectations of further interest rate hikes. Pinky Yadav, Commodity Fundamental Analyst at Choice Broking, noted that MCX gold prices extended losses due to this development.

In global markets, Comex gold futures for the December contract fell USD 28.45, or nearly 1 per cent, to USD 4,355.45 per ounce in New York. Investors are awaiting comments from Federal Reserve officials for fresh clues on the central bank's monetary policy.