MCX Gold August futures dip 0.30% to ₹99,239 per 10 grams as Fed holds rates steady; global tensions and inflation worries remain in focus
New Delhi, June 19, 2025 – Gold prices edged lower in the domestic futures market on Thursday as a stronger US dollar and a hawkish policy stance by the Federal Reserve weighed on investor sentiment. The MCX Gold August 5 contract was trading at ₹99,239 per 10 grams, marking a decline of 0.30% from the previous close.
The pullback in prices comes on the heels of the US Federal Open Market Committee’s (FOMC) decision on June 18 to keep interest rates unchanged in the range of 4.25% to 4.5%, in line with market expectations. However, Fed Chair Jerome Powell’s cautious tone and uncertainty around future rate cuts triggered a modest rally in the US dollar, reducing gold’s appeal.
📊 Key Market Drivers
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- Fed Outlook: Although the Fed’s dot plot signals a potential 50 basis point rate cut in 2025, Powell warned that upcoming data—especially inflation trends—will guide future decisions.
- Stronger Dollar: The US Dollar Index gained 0.20%, making gold more expensive for holders of other currencies and thus dampening demand.
- Inflation & Tariffs: Powell also hinted that inflation may spike during summer, partly due to President Donald Trump’s new tariffs, adding more complexity to the Fed’s rate path.
- Geopolitical Tensions: The ongoing Israel-Iran conflict continues to cast a shadow over global markets, sustaining some safe-haven demand, though not enough to offset Fed-induced pressure on gold.
📉 Outlook
While gold continues to be a preferred hedge against geopolitical instability and long-term inflation, short-term price movement is likely to remain under pressure from a firmer dollar and interest rate uncertainty. Analysts advise tracking the Fed’s future comments and real-time inflation data closely.
Tags: Gold price today, MCX Gold, US Federal Reserve, Dollar Index, Inflation 2025, Interest Rates, Israel-Iran Conflict, Market Outlook
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