India's Gold Futures Slide to Three-Month Low Amid US Dollar Strength
India's gold futures market hit a three-month low on June 24th, as the US dollar strengthened and investors anticipated higher interest rates. The Multi Commodity Exchange saw August gold fall to Rs 1,44,695 per 10 grams, a 1.25% drop from the previous day. This marked the lowest price since March 23rd.
Analysts pointed out that rising Treasury yields and concerns over Federal Reserve policy reduced demand for bullion. The strengthening US dollar also supported the dollar index above 101, putting pressure on gold prices. Gaurav Garg, Research Analyst at Lemonn Markets Desk, noted that 'gold prices fell in the domestic market amid a strengthening in the US dollar and prevailing concerns over the Federal Reserves policies,' which dampened demand for gold.
Gold futures also declined internationally, falling to about USD 4,097.85 per ounce on the Comex. This was the first time the price had breached USD 4,100 per ounce since nearly eight months ago. Renisha Chainani, Head of Research at Augmont, attributed losses to a risk-off wave after a sharp correction in AI-linked stocks and more hawkish Federal Reserve messaging.
Investors were also cautious due to uncertainty over the US-Iran nuclear deal's future. Mixed statements from both sides kept doubts alive, while traders expected clues on policy and gold prices from upcoming US inflation data.