Gold Prices Fall Following US Federal Reserve Rate Decision

Gold prices on the Multi Commodity Exchange fell to Rs 1.41 lakh per 10 grams on Thursday, erasing early gains. The August delivery contract dropped 0.13 percent to Rs 1,41,600, while the October contract declined to Rs 1,43,031. In New York, Comex gold futures for August traded marginally lower at USD 4,031.70 per ounce.

The price dip follows a decision by the United States Federal Reserve on Wednesday to maintain the federal funds rate at 3.5-3.75 percent. The downward trend is attributed to a strengthening US dollar and a cautious policy outlook from the central bank.

Federal Reserve Chair Kevin Warsh refrained from providing forward guidance to emphasize a data-dependent approach. This lack of direction coincided with market volatility and inflationary pressures linked to renewed conflict in West Asia.