Gold Prices Plummet for Sixth Straight Day Amid Rate Hike Fears

Gold prices in India continued their decline for the sixth consecutive day, falling by Rs 2,100 to Rs 1.56 lakh per 10 grams on Wednesday. The metal has lost Rs 11,000 in the past six trading sessions, with spot gold last seen at this level on August 14.

The decline is attributed to fears of a US Federal Reserve interest rate hike and escalating West Asia conflict, which have lifted oil prices and stoked inflation concerns. Silver prices also plunged by Rs 5,000 to a two-week low, falling in tandem with global markets.

According to analysts, spot gold continues to grapple with fears of an interest rate hike by the US Federal Reserve, while higher oil prices have coincided with hawkish comments from Federal Reserve Chair Kevin Warsh. Global gold-backed exchange-traded funds recorded net outflows after seven consecutive sessions of inflows due to rate-hike concerns.