Gold Prices Plummet as US Inflation Concerns Rise, Rate Hike Looms

Gold prices dropped 1.21% globally and domestically due to rising inflation concerns in the US, which increased the likelihood of a Federal Reserve rate hike next month.

The week began with gold prices rising by 1.19% to $4,657 per ounce as investors sought safe-haven assets amid geopolitical tensions and a weakening dollar.

However, hotter-than-expected US inflation data led to higher Treasury yields, which undermined the appeal of non-yielding bullion. Spot gold lost 0.52% at $4,633.50 an ounce, while silver showed relative resilience, trading at $68.720, up 0.26% on the session.

In India, MCX gold futures slumped 1.21% to ₹1,57,726 per 10 grams due to speculation about a decline in import duties and growing domestic pressures.