Gold prices on India's Multi Commodity Exchange (MCX) fell more than 1% on Wednesday, weighed down by a sharply stronger US dollar.
The dollar index climbed to its highest level in over a year, reversing recent safe-haven flows and pressuring non-yielding assets.
The decline marks a continuation of the retreat that saw gold drop more than 2% on Tuesday, as market sentiment shifted decisively against the precious metal.
The decline marks a continuation of the retreat that saw gold drop more than 2% on Tuesday, as market sentiment shifted decisively against the precious metal.
The selling pressure stems from growing expectations that the US Federal Reserve will maintain a hawkish stance for longer than previously anticipated.
As the dollar strengthens, gold becomes more expensive for holders of other currencies, dampening demand.
Traders on the MCX booked profits against the backdrop of the greenback's rally, accelerating the downward move in local trading hours.