Gold Prices Plummet Amid Fed Rate Hike Fears and Rising Oil Costs
Gold prices fell by almost 2% on a weekly basis due to rising expectations of a Federal Reserve rate hike and elevated crude oil prices. The MCX gold futures expiring in October declined by 0.08%, while silver futures (September) shed 0.04%. Gold stood at Rs 1,52,655 per kg, with silver at Rs 2,34,886 on the commodity exchange.
The price of 10 grams of 24-carat gold was at Rs 1,51,938 on Friday, down from Rs 1,54,884 seen last Friday. The increased inflation concerns due to crude oil prices led to higher expectations of a Federal Reserve rate hike, putting pressure on precious metals.
The US-Iran tensions and attacks on shipping routes raised supply-risk concerns, causing WTI crude to rise above $104 a barrel. This increase in crude prices pushed up the price of diesel to over $6 a gallon for the first time, underscoring the growing inflationary impact of higher energy costs.