Gold Prices Plummet Amid Oil Surge and Strong US Dollar

Gold prices in India plummeted by Rs 500 to Rs 1,55,400 per 10 gram on Monday as global markets saw a sell-off amid inflation worries and expectations of a Federal Reserve rate hike. The sharp decline in gold was partly due to the surge in crude oil prices, which reached a fresh four-month high of USD 103 a barrel after drone attacks on Saudi Arabia's East-West pipeline.

The strong US dollar also weighed heavily on bullion, contributing to its downward trajectory. Globally, spot gold declined by 1.3% to USD 4,291.71 per ounce, with silver tumbling nearly 3% to USD 62.82.

According to Akshat Siddhant, Lead Quant Analyst at Mudrex, the higher oil prices have added to inflation worries, putting further pressure on demand for gold and silver. However, ANZ maintains a 12-month gold price target of USD 5,400 an ounce, citing recovering ETF holdings and institutional demand.