Gold Prices Plummet as Crude Oil Surges and Dollar Strengthens
Gold prices have fallen sharply in Delhi, dropping by ₹500 to ₹1.55 lakh per 10 grams on Monday due to a combination of factors. The price of gold fell as crude oil surged and the US dollar strengthened. This marks a significant decline from the previous day's closing price of ₹1.55,900 per 10 gram.
The global market is also feeling the pressure, with spot gold declining by USD 57.22 or 1.3% to USD 4,291.71 per ounce and silver tumbling nearly 3% to USD 62.82. Experts attribute this decline to investors pricing in a probable Fed rate hike.
Akshat Siddhant, Lead Quant Analyst at Mudrex, notes that higher oil prices have added to inflation worries, putting further pressure on demand for gold and silver. Crude oil surged to a fresh four-month high of USD 103 per barrel after Saudi Arabia shut its East-West pipeline following drone attacks.
The Australia and New Zealand Banking Group (ANZ) has forecast three 25-basis-point Federal Reserve rate increases by March 2027, citing geopolitical developments in West Asia and elevated energy costs as factors adding to inflation. However, ANZ also suggests that persistent geopolitical uncertainty could strengthen gold's safe-haven appeal.