Gold Prices Plummet on Fed Rate Hike Expectations and Middle East Tensions
Gold prices fell sharply on September 14 due to multiple pressures. The metal was impacted by escalating Middle East tensions, rising oil prices, and a stronger dollar. Additionally, a 3.4% rise in US CPI in August weighed heavily on bullion ahead of the Fed's policy meeting this month.
Gold futures for the October contract declined 1.38% to Rs 1,50,673 per 10 grams on MCX (17:30 IST), while silver futures for the December contract fell 1.95% to Rs 2,30,400 per kilogram from its previous close.
Domestic spot gold traded at Rs 1,51,549 per 10 grams (17:02 IST) from its previous close, while silver declined to Rs 2,29,113 per kilogram. Comex gold slipped 1.79% to $4,330 per ounce in the morning trade (11:52 GMT), and silver edged 2.77% to just above $63 per ounce over the past 24 hours.
Nirpendra Yadav, Sr. Analyst at Bonanza Portfolio, stated that the main pressure on gold is coming from stronger-than-expected US inflation, a firmer dollar, and rising Treasury yields, which have sharply increased expectations of a 25-basis-point Fed rate hike this week.