Gold and Silver Prices Plummet Amid US Rate Hike Fears and Rising Oil Costs
Gold and silver prices have extended their losses for a second day on the Multi Commodity Exchange (MCX) due to rising oil prices, which fuelled inflation concerns. This strengthened expectations that the Federal Reserve could raise interest rates further.
The MCX silver futures for September 2026 delivery were down by Rs 1,542 to Rs 2,25,900 per kg, while gold futures for October 2026 delivery dipped by Rs 235 to Rs 1,46,569 per 10 grams. In two sessions, the yellow metal has declined Rs 4,300, and silver is down nearly Rs 9,000.
Markets currently see a 70.3% probability of a Fed rate hike in October, according to the CME's FedWatch Tool. Higher oil prices can add to inflation by raising costs across the economy, potentially prompting central banks to keep interest rates higher to contain price pressures.