New Delhi

Gold gave up early gains to trade lower at Rs 1.41 lakh per 10 grams on Thursday amid subdued market sentiment.

On the Multi Commodity Exchange, the yellow metal for August delivery fell by Rs 181, or 0.13 per cent, to Rs 1,41,600 per 10 grams.

In the previous session, it had closed at Rs 1,41,781 per 10 grams.

The October contract declined by Rs 252, or 0.18 per cent, to Rs 1,43,031 per 10 grams on the commodities bourse.

In the overseas markets, Comex gold futures for August delivery traded marginally lower at USD 4,031.70 per ounce in New York.

Gold turned lower on Thursday as a firm dollar and the US Federal Reserve's cautious stance on interest rates despite mounting inflationary pressures stemming from the renewed conflict in West Asia weighed on the yellow metal, said Deveya Gaglani, Senior Research Analyst - Commodities, Axis Direct.

The US Federal Reserve (Fed) on Wednesday kept the federal funds rate unchanged at 3.5-3.75 per cent and said it would continue maintaining ample reserves in the banking system.

Ankita Pathak, Head of Global Investments at Ionic Asset, said Fed Chair Kevin Warsh refrained from providing forward guidance, reinforcing the central bank's data-dependent approach.

READ MORE: Nigar Sultana: A pioneer Muslim woman lawyer in Jaipur

She added that any future monetary policy tightening could strengthen the US dollar and weigh on commodities and other emerging market assets.