Gold futures on the Multi Commodity Exchange (MCX) reversed early gains on Tuesday, settling ₹914 lower at ₹1,52,180 per 10 grams as a firmer dollar and hawkish signals from the US Federal Reserve kept investors cautious. The October contract had opened on a positive note, rising ₹403 to touch an intraday high of ₹1,53,497 per 10 grams before turning lower.
The dollar index strengthened to around 100.3, making gold more expensive for holders of other currencies, while Fed officials signalled further interest rate hikes. Despite the US 10-year yield easing to 4.95 per cent, the prospect of higher borrowing costs weighed on the non-yielding metal.
Market moves
On the MCX, the October gold futures contract fell nearly 1 per cent to ₹1,52,180 per 10 grams. In global markets, Comex gold futures for December delivery declined $28.45, or almost 1 per cent, to $4,355.45 per ounce in New York. Spot gold traded near $4,350 an ounce in overseas trade.
Market participants were awaiting comments from Federal Reserve officials for fresh clues on the central bank's monetary policy. FOMC members John C Williams and Thomas Barkin, along with Fed Governor Philip Jefferson, were scheduled to speak later in the day. Investors also tracked ADP employment data for further cues on the US economy and policy direction.
What to watch
The direction of the dollar and US Treasury yields will remain key for gold prices in the near term. Any further hawkish commentary from Fed officials could extend pressure on the metal, while softer economic data might revive safe-haven buying.
For a real-time view of where gold is trading now, check the live gold price.
Key takeaways
- MCX October gold futures fell ₹914 to ₹1,52,180 per 10 grams, nearly 1 per cent lower.
- Comex December gold dropped $28.45 to $4,355.45 per ounce.
- Dollar index firmed to 100.3 and US 10-year yield eased to 4.95 per cent.
- Fed officials' speeches and ADP employment data were the next catalysts.
Common questions
Why did gold futures fall on Tuesday?
Gold futures declined as the dollar strengthened and the Federal Reserve signalled further interest rate hikes, which reduced the appeal of non-yielding assets like gold.
What is the current price of gold on MCX?
The October contract on MCX settled at ₹1,52,180 per 10 grams, down ₹914 from the previous close.
What factors are influencing gold prices?
Key factors include the dollar index, US Treasury yields, Federal Reserve policy expectations, and upcoming economic data such as ADP employment figures.
Investors will continue to monitor Fed commentary and economic releases for direction, as gold remains sensitive to changes in interest rate expectations and the dollar's strength.