Gold and Silver Prices Surge as Interest Rate Hike Expectations Rise

The precious metals market saw a sharp recovery in August after months of decline. The expectation of an interest rate hike by the U.S. Federal Reserve and a weakening U.S. Dollar contributed to this rise.

Comex gold prices gained 9.73% in August, settling at $4,497.3/ounce by month's end. Comex silver saw an even bigger jump, with a 16.32% gain to settle at $67.2/ounce.

In the local markets, precious metal prices also rose in line with global trends. However, the gains were limited due to the strengthening Indian Rupee against the U.S. Dollar. MCX Gold and MCX Silver saw gains of 7.75% and 8.46%, respectively.