Gold Prices Plummet in India Amid Weak Demand and Hawkish Fed Rate Hike
Gold prices in India plummeted by Rs 600 on Thursday due to weak domestic demand and global concerns after the Federal Reserve's interest rate hike. The US Fed raised its benchmark interest rate by 25 basis points to 3.75-4 per cent, marking its first increase since 2023.
The hawkish policy message from the Fed signaled persistent inflation worries and potential future increases. However, gold found some support in global markets as Treasury yields, crude oil prices, and the dollar index pulled back slightly.
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said that 'gold edged lower on Thursday, tracking overnight weakness in international markets after the Federal Reserve delivered a hawkish policy message.'
Spot gold staged a recovery, rising USD 52.85, or 1.24 per cent, to USD 4,317.11 per ounce, while silver gained nearly 2 per cent to USD 64.06 an ounce.