Gold prices lost their early shine on Tuesday, falling Rs 914 to Rs 1.52 lakh per 10 grams in futures trade amid a stronger dollar and hawkish signals from the US Federal Reserve, keeping investors cautious.
On the Multi Commodity Exchange (MCX), the yellow metal futures for October delivery opened on a firm note, rising by Rs 403 to touch an intraday high of Rs 1,53,497 per 10 grams.
The contract later reversed course, falling Rs 914, or nearly 1 per cent, to Rs 1,52,180 per 10 grams.
“MCX gold prices have extended losses as the dollar index strengthened to around 100.3 following hawkish comments from the Federal Reserve, which reinforced expectations of further interest rate hikes, despite the US 10-year yield easing to 4.95 per cent,” said Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.
In global markets, Comex gold futures for the December contract fell USD 28.45, or nearly 1 per cent, to USD 4,355.45 per ounce in New York.
Gold was trading near USD 4,350 an ounce in overseas trade on Tuesday as investors awaited comments from Federal Reserve officials for fresh clues on the central bank’s monetary policy, said Kaynat Chainwala, AVP – Commodity Research at Kotak Securities.Federal Open Market Committee (FOMC) members John C Williams and Thomas Barkin, along with Fed Governor Philip Jefferson, are scheduled to speak later in the day.
Investors will also track ADP employment data for further cues on the US economy and monetary policy, Chainwala said.