Gold futures in India fell sharply on Wednesday, dropping ₹2,308 to trade at ₹1.43 lakh per 10 grams as investors adopted a cautious stance ahead of the release of the US Federal Reserve's June meeting minutes.
The decline reflects broader pressure on precious metals from a strengthening US dollar and rising crude oil prices, which have dampened demand for bullion amid ongoing geopolitical tensions.
This continued sell-off marks a significant reversal from earlier in the month, when spot gold had hit a one-week high of $4,063 driven by weak jobs data and rate-cut bets.
The move in Indian futures mirrors weakness in global markets, where spot gold has extended its losses to slip to $3,985.89 per ounce, a decline of 0.4% that places the metal near its lowest level in seven months.
This continued sell-off marks a significant reversal from earlier in the month, when spot gold had hit a one-week high of $4,063 driven by weak jobs data and rate-cut bets. The current trajectory underscores the sensitivity of bullion to shifting monetary policy expectations and currency strength.
Market participants are closely watching the upcoming Fed minutes for clues on the central bank's future rate path.
Recent pressure on gold has been compounded by rising US Treasury yields and a hawkish Fed outlook, which previously weighed heavily on the metal. The interplay between energy costs, currency valuation, and interest rate expectations continues to define the near-term outlook for precious metals, with traders adjusting positions ahead of key data releases.