Gold prices retreated on Thursday morning as a resilient US dollar and shifting Federal Reserve policy expectations weighed on the precious metal.
The dollar index held firm above the 101 level, reinforcing the headwind for non-yielding assets as markets recalibrated their outlook on US monetary policy.
The decline on India's Multi Commodity Exchange (MCX) follows a sharp drop of nearly 1% in previous sessions, where traders booked profits against a strengthening greenback.
The decline on India's Multi Commodity Exchange (MCX) follows a sharp drop of nearly 1% in previous sessions, where traders booked profits against a strengthening greenback.
The dollar index recently climbed to its highest level in over a year, reversing earlier safe-haven flows and intensifying pressure on gold.
This repricing reflects growing market consensus that the Federal Reserve may maintain a tighter stance for longer than previously anticipated.
The sustained strength in the US currency has created a challenging environment for gold, which typically moves inversely to the dollar.