Gold slipped 0.21% to ₹1.46 lakh per 10 grams on the MCX October contract, the lowest level in seven weeks.
The FedWatch index has surged to 72.5% probability of an October rate hike, up from 57.6% last week – a sharp uptick that has fed into the commodity’s decline, said Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions.
US Treasury yields are climbing, and the dollar sits near ₹96 per U.S. dollar, tightening gold’s appeal as a safe‑haven. Crude oil prices have also spiked, adding to inflationary pressure and widening the yield gap.
Spot gold remains around $4,130 an ounce, mirroring the MCX dip, while the currency’s strength keeps the Indian rupee weaker, compounding the downward pressure on the metal.
Analysts point to upcoming U.S. data – consumer confidence, ADP employment, PCE inflation, and non‑farm payrolls – as the next clues for the Fed’s trajectory, which will in turn dictate gold’s short‑term direction.
Support for MCX gold hovers around ₹1.48 lakh per 10 grams, with resistance at ₹1.49 lakh, suggesting a narrow trading range if Fed policy remains hawkish.