Gold Prices Plummet 2% Amid Expectations of Another Rate Hike

The price of domestic gold rose by Rs 1,377 on September 25 to reach Rs 1,51,377 per 10 grams. However, despite this gain, the metal remains 2% lower for the week due to expectations of another Fed rate hike in October.

The US dollar index was trading at 101.10, down 0.18%, while Brent crude futures increased by 1.08% to $105.45 per barrel. Analysts estimate that gold prices will remain volatile and could range between Rs 1,47,000 and Rs 1,54,000 per 10 grams in the near term.

Jateen Trivedi, VP Research Analyst at LKP Securities, said that profit booking from higher levels continued, while Rs 1,50,000 remained an important support. He also noted that a sustained rise in the Dollar Index above 101 could add further pressure on bullion.