Gold falls in India as dollar firms and Fed rate-hike bets rise

VG Markets · 2026-06-24T06:38:00Z
Gold falls in India as dollar firms and Fed rate-hike bets rise

International spot pressure and a stronger US dollar pulled domestic prices lower, while easing geopolitical tensions following US-Iran diplomatic progress reduced gold's safe-haven appeal.

Source: MCX, GoodReturns, Investing.com

  • Gold / gram (24K) ₹14,460 ↓ from ₹14,585
  • Gold / 10g (24K) ₹144,600 ↓ Around ₹1,250 on the day
  • XAU/USD Spot $4,063 ↓ Around 1.1%
  • USD/INR ₹94.67 Broadly stable

Gold prices in India declined on Wednesday, following weaker international spot prices as the US dollar strengthened. Spot gold (XAU/USD) fell around 1.1% to approximately $4,063 per troy ounce, pressured by rising expectations that the US Federal Reserve could raise interest rates as early as September. Several Fed policymakers now expect at least one additional rate increase before year-end, supporting the dollar and weighing on precious metals.

Domestic gold prices, calculated from international US dollar prices using the prevailing USD/INR exchange rate and including India's 15% import duty, moved lower in line with global markets. The Indian rupee remained broadly stable near ₹94.67 per US dollar, providing little support to offset the decline.

Meanwhile, progress in US-Iran diplomatic negotiations further reduced gold's safe-haven demand. Washington recently granted Iran a 60-day oil export licence, while shipping activity through the Strait of Hormuz has partially resumed. These developments eased geopolitical concerns that had supported gold prices during much of the first quarter.

Despite the recent pullback, gold remains significantly higher for the year, although it has retreated sharply from its record high of $5,602 per ounce reached on 29 January 2026. Investors are now focusing on the US Personal Consumption Expenditures (PCE) Price Index, due later this week, which could provide fresh guidance on the Federal Reserve's policy outlook and the next move in gold prices.

Key drivers

  • Stronger US dollar.
  • Rising expectations of a September Fed rate hike.
  • US-Iran diplomatic progress reduces geopolitical risk premium.
  • US PCE inflation data due later this week.

Sources: GoodReturns (India jewellery price aggregation), Investing.com (XAU/USD, 25 June 2026), market USD/INR mid-rate, Government of India (15% gold import duty). For informational purposes only — not investment advice.