Gold Hovers Near Mid-March Low On Stronger Dollar, Check Gold Price In India

Gold prices lingered near a Mid-March low on Thursday, dragged down by a stronger dollar and hawkish comments from US Federal Reserve Chair Jerome Powell, according to a Reuters report.

Spot gold fell 0.2% to $1,903.19 per ounce by 0340 GMT, near a mid-March low hit on Wednesday.

US gold futures fell 0.5% to $1,911.70.

The dollar index was higher, making gold expensive for holders of other currencies, stated the Reuters report.

Meanwhile, in India current 22K gold price as of June 29, 2023 is Rs 53,850/10 gram after a decline of Rs 200 and 24K gold price is Rs 58,750/10 gram after a fall of Rs 210.

Gold prices in India witnessed steep decline of Rs 400 on June 23 for 22 K and Rs 430 for 24K. It is worth noting that 22K gold prices fell by Rs 300 and by Rs 330 for 24K on June 21, 2023.

Powell's hawkish remarks reinforced interest rates going higher for longer, with a higher opportunity cost of holding gold dimming the appeal of gold, said OCBC FX strategist Christopher Wong.

Powell suggested another two rate hikes to the Fed funds target rate were likely, and he did not see inflation abating to the 2% target until 2025, Reuters reported.

Investors now see an 81% chance of a 25-basis point rate hike in July before rates holding steady for the remainder of the year, according to CME's Fedwatch tool.

High interest rates discourage investing in non-yielding gold, as per the Reuters report.

Market participants are now awaiting initial US jobless claims and final first-quarter GDP numbers due later in the day, along with personal consumption expenditures (PCE) data for May on Friday, added Reuters report.