Gold prices fell sharply on the Multi Commodity Exchange (MCX), dropping nearly 1% as traders booked profits against a backdrop of a strengthening U.S. dollar.
The decline reflects growing market expectations that the Federal Reserve may implement further rate hikes, increasing the opportunity cost of holding non-yielding assets like precious metals.
This development follows a volatile week for gold, which had previously rallied to a peak of $4,382 per ounce before reversing course.
The sell-off in gold is part of a broader retreat across risk-sensitive and non-yielding assets.
Spot gold, silver, and Bitcoin all posted losses as investors reassessed the trajectory of U.S. monetary policy.
The greenback’s firmness added additional pressure on dollar-denominated commodities, exacerbating the downward move in precious metals.
This development follows a volatile week for gold, which had previously rallied to a peak of $4,382 per ounce before reversing course.