MCX Gold Prices Plummet Amid Rising Inflation Fears and Hawkish Fed Signals

MCX gold prices slipped for the week as traders scaled back their bullion bets following hawkish signals from US Federal Reserve officials and rising global inflationary pressures. The MCX gold price for October delivery closed lower in each of the last four trading sessions, causing it to drop ₹3,500 per 10 grams for the week.

The losses were more than double the ₹1,597 gain recorded in the previous week. Rising bond yields driven by elevated crude oil prices have been a major challenge for gold, and investors are demanding greater compensation to hold bonds due to concerns about persistent inflation and government spending.

Fed Governor Michael Barr said that further rate hikes “are likely to be needed” to bring inflation back to the Fed’s 2% target. Williams said the Fed is done with explicit forward guidance, adding that policymakers will instead assess incoming economic data before deciding on future policy moves.