Latest gold prices: At 3-month low on hawkish US Fed

Gold

Gold prices slipped to a three-month low and traded below $1940 an oz on June 21 after the dollar index continued to remain elevated on the back US Federal Reserve's hawkish commentary.

While Fed officials held the policy interest rate steady at its meeting earlier in June, they signalled that rate hikes would likely resume. Market participants are now pricing in a 25 basis points rate hike in July.

Moreover, single-family homebuilding projects in the US jumped in May by the most in more than three decades and permits issued for future construction also climbed, suggesting the housing market may be turning a corner after being impacted by Fed interest rate hikes.

Investors now also remain cautious ahead of Fed Chairman Jerome Powell's congressional testimony on June 21

Latest Gold Prices

The latest Mumbai Gold Rate on June 21 reveals a slight decline in prices. The 24 carat 999 gold bar of 10 grams is trading at Rs 5,898. On the other hand, 22 carat gold rate for a 10-gram jewellery stands at Rs 5,697, while the rate for an 18 carat jewellery item is Rs 4,718. These prices have been sourced from Shree MumbaDevi Dagina Bazaar Association, and do not include a 3 per cent Goods and Services Tax (GST)