Gold pulls back from record highs, drops by ₹2,256 over 3 sessions on profit booking

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₹74,367 per ten grams to reach a new one-week low of ₹72,111 on the MCX, marking a decline of ₹2,256. The spot gold price dropped to $2354.95 per ounce in today's session, marking a three-day slide of $71, or 3%.

Since Monday's all-time high of $2,450, the bullion has undergone a correction of 3.9%.Also Read: Nifty Metal skyrockets nearly 1,100 points in just 9 sessionsThis downward movement can be attributed to investors engaging in profit booking, particularly after the release of the Federal Reserve meeting minutes, which hinted at a lack of confidence among policymakers regarding the possibility of imminent interest rate cuts.The Federal Reserve on Wednesday released the minutes of the Federal Open Market Committee meeting that was held on April 30–May 1, 2024. The minutes for each regularly scheduled meeting of the Committee are generally published three weeks after the day of the policy decision.The minutes showed that while policymakers viewed current policy as "well positioned," some expressed readiness to tighten policy further if necessary.

Additionally, it was noted that achieving greater confidence in inflation reaching the targeted 2% level would take longer than previously expected.Also Read: Gold hits new record high on rising US Fed rate cut expectationsThe likelihood of rate reductions in September and November has slightly diminished to approximately 61% and 72%, respectively. Following the more hawkish tone of the Federal Reserve's minutes, the US Dollar index, which measures the currency against six major counterparts, surged to a week high in the preceding session, triggering profit booking in gold.