Gold Prices Plummet on Rising Rate Hike Expectations
Gold prices dropped sharply on Monday, extending losses for a fourth consecutive session. The MCX silver futures for September 2026 delivery fell by Rs 3,635 to Rs 2,38,809 per kg, while gold futures for October 2026 delivery decreased by Rs 2,700 to Rs 1,53,640 per 10 grams.
This decline comes as U.S. Federal Reserve Chair Kevin Warsh's comments raised expectations that interest rates may need to rise. Markets are now pricing in a 57% chance of a rate hike at the Fed's September meeting, up from 30% before Warsh's remarks.
Higher interest rates tend to weigh on gold as they make holding the non-yielding asset less attractive. Investors will also be watching a series of U.S. labour market data due this week, including job openings, the ADP employment report, weekly jobless claims and nonfarm payrolls.