Gold futures sink to three-month low as dollar rally batters bullion

Gold futures on MCX fell to a three-month low, with August contracts dropping Rs 1,834 (1.25%) to Rs 1,44,695 per 10 grams. Internationally, gold slipped below USD 4,100 per ounce for the first time in nearly eight months, trading at USD 4,097.85. The selloff is driven by a strengthening US dollar above 101, hawkish Federal Reserve signals pricing in an 86% probability of a December 2026 rate hike, and a risk-off wave spilling over from AI-linked stock corrections.