Gold Prices Plummet as Crude Oil Soars and US Rate Hikes Loom
Gold and silver prices have taken a sharp dive today due to rising crude oil prices fueling inflation concerns and strengthening expectations of further interest rate hikes by the US Federal Reserve. The MCX silver futures for September 2026 delivery declined by Rs 6,661 to Rs 2,28,035 per kg, while gold futures for October 2026 delivery fell Rs 3,214 to Rs 1,47,667 per 10 grams.
Internationally, spot gold dropped 1.5% to $4,223.95 per ounce as of 0117 GMT, and US gold futures also declined 1.5% to $4,257.90 per ounce. Other precious metals followed the downward trend with spot silver falling 2.6% to $62.64 per ounce.
The pressure on gold prices is due to higher oil prices and bond yields rising, which raises concerns about inflation and the possibility of tighter monetary policy. Higher oil prices have heightened inflation risks amid uncertainty over global supply, strengthening expectations that the US Federal Reserve could raise interest rates further.