Gold Retreats as Fed`s Hawkish Stance Hits Rate Cut Hopes

Published on May 23, 2024 13:15

Gold futures extended losses for the third consecutive session as fresh record highs prompted profit-taking in the commodity. The strength of the US dollar further weighed on gold and other dollar-denominated assets. The dollar index hovered around 104.9, buoyed by the Federal Reserve`s hawkish tone expressed in meeting minutes, signaling concerns over persistent inflation and reducing expectations for rate cuts. Amidst this sentiment, investors await Thursday`s US weekly jobless claims and May`s flash PMI figures for further market cues. MCX June bullion futures dropped by nearly Rs 800 or 1% to Rs 72,319 per 10 grams.