Gold and Silver Prices Plummet Amid Fed Rate Hike Expectations
Gold and silver prices fell on Monday due to increased expectations of a Federal Reserve rate hike. The stronger US dollar and higher Treasury yields also weighed on bullion.
According to Upstox, gold was trading around ₹1,56,850 per 10 grams in the early Indian market, while silver was around ₹2,42,190 per kilogram. On the MCX, October gold futures were down roughly 1.7%, and December silver futures were down about 2.1%.
Tanishq's 24K gold rate remains unchanged at ₹15,873 per gram, while Joyalukkas lists its 22 KT gold rate at ₹14,505 per gram across various states in India. Malabar Gold & Diamonds' gold rate was also updated on August 29, with 22K gold priced at ₹1,45,050 for 10 grams.
Tata Mutual Fund's outlook remains constructive on gold and silver over the medium to long term, but highlights near-term volatility due to factors such as central-bank gold purchases and industrial demand fluctuations. The report suggests a staggered investment approach and recommends a strategic allocation of 70:30 between gold and silver.