Gold Prices Plummet Amid Rising Inflation Expectations

Global gold prices dipped on Monday after the US released higher-than-expected inflation data, which increased the likelihood of a Federal Reserve interest rate hike this week. The Fed's first rate hike in three years is now priced in at nearly 88 per cent by traders.

The heightened inflation concerns due to crude oil price rally also weighed on gold and silver prices. Spot gold was near $4,340 an ounce, falling 0.2 per cent on the day and off 1.8 per cent for the week.

Gold and silver futures on MCX will only trade in the evening session from 5 pm till 11:30 pm on Monday, and will remain closed during the morning session on Ganesh Chaturthi, a Hindu festival.