Gold Prices Plummet on Global Sell-Off, Higher Oil Costs
Gold prices plummeted by Rs 500 to Rs 1,55,400 per 10 grams in New Delhi on Monday due to a sell-off in global markets. The decline was fueled by a sharp increase in crude oil prices and a stronger US dollar.
The price of spot gold fell USD 57.22, or 1.3 percent, to USD 4,291.71 per ounce, while silver declined nearly 3 percent to USD 62.82.
Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex, attributed the decline to investors factoring in a probable Federal Reserve rate hike and intensified inflation concerns due to higher crude oil prices.
The surge in oil prices has also complicated the outlook for interest rates, with Australia and New Zealand Banking Group (ANZ) forecasting three 25-basis-point Federal Reserve rate increases by March 2027.