Gold Prices Plummet Amid Fed Rate Hike and Rising Oil Costs

Gold prices have taken a hit after a sharp decline in the latest trading session. The precious metal fell 0.8% to $4,417.04 per ounce, marking its lowest point in two weeks. This downturn was partly attributed to a US Federal Reserve rate hike and rising oil prices amid renewed tensions between the US and Iran.

The recent fall has put pressure on gold as investors changed their views on US interest rates. With higher rates making it less attractive to invest in gold due to its lack of interest-bearing potential, traders are keeping a close eye on US jobs data and inflation figures from the Eurozone and Germany.

In India, gold prices do not always move in tandem with global prices. The rupee's value against the US dollar plays a significant role in determining Indian gold prices. When the rupee falls, imported gold becomes more expensive in India.