Gold slides over 2% as Dollar climbs to multi-month high

Gold prices fell more than 2% on Tuesday, pressured by a stronger US dollar and growing expectations that the Federal Reserve could raise interest rates later this year. MCX August gold futures declined nearly 2% to ₹145,893 per 10 grams, while silver prices also remained under heavy selling pressure. The dollar index hovered near 101, its highest level since May 2025, supported by hawkish Fed expectations and signs of progress in US-Iran peace talks. Adding to market pressure, both Deutsche Bank and Bank of America now anticipate a Fed rate hike in September. Meanwhile, Washington?s decision to grant Iran a 60-day license to sell oil internationally has eased supply concerns and reduced safe-haven demand for gold. Investors are now closely watching this week?s US PCE inflation report, the Fed?s preferred inflation gauge, for fresh signals on the future path of interest rates.

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