Gold Prices Drop 2% Amid Rate Hike Fears and Surging Crude Oil

Gold prices fell by nearly 2% this week as investors became increasingly cautious about potential US Federal Reserve rate hikes.

The decline was also driven by rising crude oil prices, which reached $104 per barrel and pushed concerns about inflation even higher.

The price of gold on the MCX futures market for October slipped 0.08% to ₹1,52,655, while September silver futures declined 0.04% to ₹2,34,886 per kg.

US headline inflation increased by 0.4% month-on-month and 3.4% year-on-year in August, with energy costs contributing to the increase.

Expectations of a rate hike at the September 15-16 Federal Open Market Committee meeting climbed above 70%, according to market participants.