Gold futures fall ₹914 to ₹1.52 lakh/10g as dollar strengthens, hawkish Fed weighs

Gold prices slipped on Tuesday, dropping ₹914 to ₹1.52 lakh per 10 grams in futures trading due to a stronger dollar and hawkish remarks from the US Federal Reserve, causing investors to become more cautious. The Multi Commodity Exchange (MCX) saw gold futures for October delivery open strongly at ₹1,53,497 per 10 grams, but later retreated, falling ₹914, or nearly 1 percent, to ₹1,52,180 per 10 grams.

This decline in MCX gold prices followed a strengthening dollar index to around 100.3, driven by hawkish comments from the Federal Reserve, which further fueled expectations of additional interest rate hikes, despite a slight easing in the US 10-year yield to 4.95 percent, according to Pinky Yadav, a Commodity Fundamental Analyst at Choice Broking.

On the international stage, Comex gold futures for December delivery fell $28.45, or nearly 1 percent, to $4,355.45 per ounce in New York, as traders awaited insights from Federal Reserve officials on the central bank's monetary policy, reported Kaynat Chainwala, AVP - Commodity Research at Kotak Securities. Scheduled to speak later in the day are Federal Open Market Committee (FOMC) members John C Williams and Thomas Barkin, as well as Fed Governor Philip Jefferson, whose remarks could provide more clues about the bank's monetary policy stance.

Investors will also keep a close eye on ADP employment data for additional cues about the US economy and monetary policy.