Gold Prices Plummet Amid Higher Interest Rates and Stronger Dollar

Gold prices have been under sustained pressure after Federal Reserve Chair Kevin Warsh gave a hawkish signal on interest rates, increasing expectations of a possible rate hike in September.

The decline in gold prices has also been influenced by higher interest rates, which put downward pressure on the yellow metal as it does not offer any interest income.

Spot gold fell to its lowest level since August 19 and prices have declined for the second consecutive session after falling more than 3% in the previous session.

A stronger dollar and rising bond yields have also added pressure on bullion prices, with the Multi Commodity Exchange (MCX) recording a drop of Rs 1,908 per 10 grams in early trade.