Gold futures sink to three-month lows as dollar gains push bullion

Gold futures on Wednesday rose to Rs. 1,834 down to Rs. 1.44 lakh per 10 gram touched a three-month low and kept investors away from precious metals.

On the Multi Commodity Exchange, the yellow metal for August delivery was priced at Rs. 1,834 or 1.25 percent down to Rs. 1,44,695 per 10 grams in business turnover of 9,508 lots.

The precious metal was last seen around these levels on March 23, when it touched Rs. 1,45,069 per 10 grams was fixed.

Analysts said domestic markets remained under pressure as traders priced in a tighter US monetary policy path, boosting the dollar and Treasury bond yields.

“Gold prices fell in the domestic market amid a strengthening US dollar and prevailing concerns over Federal Reserve policies, which dampened demand for bullion,” said Gaurav Garg, research analyst at Lemon Market Desk.

Meanwhile, gold futures slipped below USD 4,100 per ounce in international markets for the first time in nearly eight months. The metal fell USD 51.55, or 1.24 percent, to USD 4,097.85 an ounce on the Comex.

It was last quoted near these levels on October 28, 2025 when it traded at USD 4,100.6 per ounce.

A combination of global factors has accelerated the sell-off in precious metals, according to analysts.

“Gold prices in global markets are extending their losing streak despite the US-Iran peace deal being pushed by three concurrent forces,” said Renisha Chainani, head of research at Ogmont.

A broader risk-off wave triggered by a sharp correction in AI-linked stocks spilled over into precious metals, while increasingly hawkish signals from the Federal Reserve pushed the likelihood of a December 2026 rate hike to 86 percent.

A strong rate outlook lifted the dollar index above the 101-mark, weighing heavily on bullion prices.

Meanwhile, uncertainty continues over the durability of the US-Iran deal struck earlier this week.

US President Donald Trump said on Tuesday that Iran had agreed to indefinite nuclear inspections, though Tehran quickly disputed the claim, raising new questions about the deal’s future.

Market participants now await the US Personal Consumption Expenditures (PCE) number, the Federal Reserve’s favorite inflation gauge, due on Thursday for further clues on the path of monetary policy and bullion prices, Chenani added.