Gold Futures Plunge Amid Dollar Strength and Hawkish Fed Comments

Gold futures on the Multi Commodity Exchange (MCX) plummeted by Rs 914 to Rs 1.52 lakh per 10 grams, after initially rising by Rs 403 in intraday trade. The drop was attributed to a stronger dollar and hawkish signals from the US Federal Reserve.

The Fed's comments reinforced expectations of further interest rate hikes, said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking. This led to a strengthening of the dollar index to around 100.3.

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 were awaiting comments from Federal Reserve officials for fresh clues on the central bank's monetary policy.