Gold price today: Gold rates were down in early deals in the domestic futures market on Tuesday, 23 June, as the dollar index was above the 100 mark, driven by expectations of a US Federal Reserve rate hike this year, triggering profit booking in precious metals.

MCX gold August futures were 1.05% down at ₹1,46,566 per 10 grams, while MCX silver July futures were 2.85% down at ₹2,27,622 per kg around 9:10 am.

The dollar index rose to 101.08- its one-year high, making greenback-denominated bullion expensive for buyers in other currencies.

The rise in the dollar has been driven by expectations of a US Federal Reserve rate hike this year, amid elevated crude oil prices that have raised inflationary pressures.

Even though oil prices have recently declined as the US and Iran move toward a deal to end their conflict, the dollar index remains firm amid expectations of Fed rate hikes.

Markets have raised their bets on a rate hike this year. According to Reuters, the CME FedWatch Tool indicated traders now see an 88% chance of a rate hike in December. Notably, before the Fed meeting last week, they saw a 61% chance of a rate hike this year.

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Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.