Gold Plummets as Oil Prices Soar, Rate Hike Bets Rise

The price of gold and silver plummeted on Monday due to rising oil prices, which strengthened expectations of further Federal Reserve rate hikes. On the Multi Commodity Exchange (MCX), MCX silver futures for September 2026 delivery fell by Rs 6,661 to Rs 2,28,035 per kg.

Globally, spot gold was down 1.5% at $4,223.95 per ounce and US gold futures fell 1.5% to $4,257.90. Spot silver declined 2.6% to $62.64 per ounce. Traders are currently pricing in a 66% chance of another US rate hike in October.

Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile this week due to fluctuations in crude oil prices, the dollar index, geopolitical tensions, and developments around the US-Iran peace talks. He advised waiting for updates on the US-Iran peace talks before taking fresh positions in gold and silver.

Jain suggested those holding long positions in gold maintain a strict stop-loss below Rs 1,49,600 and in silver below Rs 2,30,000, on a daily closing basis.