Gold Prices Plummet to Two-Week Low Amid Interest Rate Hike Bets

Gold prices have dropped to a two-week low as investors anticipate US employment data and potential interest rate hikes by the Federal Reserve. The Multi Commodity Exchange (MCX) in India saw gold futures fall by over 1% in recent trading, settling at Rs 1,50,123 per 10 grams.

The decline is largely driven by investor caution ahead of critical US labor market reports, including non-farm payroll data. This can influence how the US Federal Reserve manages interest rates, which has become a pressing concern due to persistent inflation.

Federal Reserve Chair Kevin Warsh recently signaled that policymakers might need to tighten interest rates further if inflation remains stubborn. Market expectations for an interest rate hike in September 2026 have increased, currently sitting at around 66%.