Spot gold opens down as futures ease on firm dollar, dim Fed rate cut hopes
This story was originally published at 16:19 IST on 12 March 2026
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By Reshma Ravi
MUMBAI – Prices of gold in the spot market opened lower Thursday, tracking losses in futures contracts on the Multi Commodity Exchange of India and the COMEX due to a firm dollar. Prices also fell due to fading hopes of a rate cut by the US Federal Reserve as higher crude oil prices have renewed concerns about inflation, analysts said.
"Dollar index uptrend is causing dent to international gold prices which in turn is putting pressure on spot prices," Nitin Kedia, national general secretary of All India Jewellers & Goldsmith Federation, said.
In Mumbai, the spot price of gold of 99.9% purity opened at INR 159,624 per 10 grams, down from Wednesday's closing price of INR 160,230 per 10 grams. Dealers are offering a discount of INR 5,000 per 10 grams, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association.
"Growing prospects of rising inflation numbers due to higher oil prices have reduced chances of two rate cuts by the US Federal Reserve," ICICI Direct said in a report. Iranian military officials said the world should be ready for oil at $200 a barrel as it attacked three ships trying to transit the Strait of Hormuz, including two in Iraq's territorial waters. The key waterway has been shut after the US and Israel attacked Iran on Feb. 28, which has severely disrupted flows of oil, gas, and other commodities.
"Iran has deployed about a dozen mines in the Strait of Hormuz, according to sources, a move that could complicate efforts to reopen the narrow waterway, a key route for global oil and liquefied natural gas shipments," SMC Global Securities said in a report.
Market participants are now awaiting weekly unemployment claims data from the US, which is due later in the day, for further cues on the US Federal Reserve's rate cut path. End
Edited by Avishek Dutta
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