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Gold Futures Drop as Strong Dollar, Rate Hike Fears Return
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News18•21-09-2026, 18:30
Gold Futures Drop as Strong Dollar, Rate Hike Fears Return
- •Gold futures fell by Rs 832 to Rs 1.53 lakh per 10 gram on Monday, reversing recent gains.
- •The decline is attributed to a firm US dollar and renewed concerns about interest rate hikes.
- •The dollar index remains above 100 after the Federal Reserve's first rate hike in three years and hawkish comments from Fed Chair Kevin Warsh.
- •International Comex gold futures also slipped by nearly 1% to USD 4,391.97 per ounce.
- •Analysts expect further rate hikes due to a resilient US economy, tight labor market, and persistent inflation, while geopolitical uncertainty in West Asia could impact safe-haven demand.
Key Questions Answered
On the Multi Commodity Exchange (MCX), gold futures for October delivery traded lower by Rs 832, or 0.54 per cent, to Rs 1,53,549 per 10 grams on Monday.
Gold prices faced headwinds as a firm US dollar, profit-taking by investors, and renewed rate-hike concerns following Fed Chair Kevin Warsh’s hawkish tone weighed on the yellow metal.
Indian retail buyers have largely stayed on the sidelines, waiting for more favourable price levels amid weak global cues and subdued domestic demand.
