Gold Prices Plummet in New Delhi Amid Global Market Volatility
Gold prices plummeted in New Delhi on Monday, falling by Rs 500 to Rs 1,55,400 per 10 gram. This downturn is attributed to a sell-off in global markets, which accelerated due to a sharp rise in crude oil prices and the strengthening US dollar.
The global gold market also witnessed a decline, with spot gold slipping to USD 4,291.71 per ounce, representing a 1.3% decrease from its previous value.
Akshat Siddhant, Lead Quant Analyst at Mudrex, stated that the probable Fed rate hike and higher oil prices have exacerbated inflation worries, thereby putting further pressure on demand for gold.
Notably, crude oil surged to USD 103 a barrel, reaching a four-month high following Saudi Arabia's East-West pipeline shutdown due to drone attacks. This development has added to the interest-rate outlook uncertainty, with ANZ forecasting three 25-basis-point Federal Reserve rate increases by March 2027.