Gold Prices Plummet Amid US Rate Hike Fears
Gold and silver prices plummeted up to 2% on Monday, September 14, due to weak global cues. The MCX gold October futures dropped by 1.19% to ₹1,50,973 per 10 grams, while the MCX silver December contracts fell by 1.70% to ₹23,100 per kg.
The commodity market was closed in the first half of the session due to Ganesh Chaturthi. International gold prices also declined as concerns about a possible interest rate hike by the US Federal Reserve on September 16 grew.
US gold futures for December delivery crashed more than 2% in two consecutive sessions, hitting $4,317.95 per troy ounce after the US CPI data came above expectations. This reinforced concerns that the Fed may step up its moves against inflation and raise interest rates.
Vandana Bharti, Head of Commodity Research at SMC Global Securities, believes gold has already seen a meaningful correction from recent highs as the market prices in the possibility of a Fed rate hike. She expects Wednesday's Fed decision to be a key trigger for the next big move.