New Delhi, Sept. 25 -- MCX gold prices drifted lower throughout this week, giving up twice the gains recorded in the second week of September, as traders scaled back their bullion bets following hawkish signals from US Federal Reserve officials, higher US Treasury yields and rising global inflationary pressures.

MCX gold for October delivery closed lower in each of the last four trading sessions, causing it to drop Rs.3,500 per 10 grams for the week, falling to Rs.1,50,891. The losses were more than double the Rs.1,597 gain recorded in the previous week.

The weakness also turned September's gains into losses, marking a stark reversal from the strong gains in August. The biggest challenge for the yellow metal has been rising bond yields,...