Gold and Silver Prices Plummet as US Federal Reserve Hints at Interest Rate Increase

The prices of gold and silver on the Multi Commodity Exchange (MCX) plummeted on Friday, causing a significant fall in their value. Gold futures for October 5 fell by ₹2596 or 1.63% to ₹156400 per 10 grams, while silver futures for September 4 declined by ₹4000 or 1.66% to ₹2,36,651 per kg.

In the Delhi market, gold prices also dropped by ₹3300 to ₹1,62,400 per 10 grams in a single day, marking a decline of about 3%. Similarly, silver prices fell by ₹5000 to ₹2,45,500 per kg. The sharp drop in prices was attributed to a statement from the US Federal Reserve Chief Kevin Wersh, hinting at an increase in interest rates.

The global market also reflected this trend, with gold prices falling by 3.43% to $4,504.10 an ounce and silver prices dropping by 4.57% to $66.255 an ounce. The sudden drop in prices has left investors and traders concerned about the impact on the commodity markets.