Gold Dips 3% on Weekly Basis Amid US Fed Rate Hike Expectations
New Delhi, Gold prices declined by nearly 3 per cent on a weekly basis due to a reassessment of US monetary policy and rising crude oil prices, which heightened inflation concerns.
The MCX gold futures (October) inched up 0.03 per cent while the MCX silver futures (September) shed 0.07 per cent. The yellow metal stood at Rs 1,52,815, while the white metal stood at Rs 2,37,500.
A blockbuster August jobs report on Friday reversed much of the dovish shift from the US Federal Reserve in a single session, according to a market participant. Bullion initially found support from geopolitical uncertainty and weakness in the US dollar.
However, the escalation in the US-Iran conflict, including Iran's retaliatory attack on Kuwait following renewed US strikes on Iranian rocket launchers near the Strait of Hormuz surged crude oil prices adversely affecting gold.