Gold Prices Plunge as Strong US Jobs Data and Crude Oil Rises Spook Investors
Gold prices plummeted nearly 3% over the week as investors reassessed their expectations of US monetary policy amid strong employment data and inflationary pressure from rising crude oil prices.
The precious metal initially drew support from geopolitical uncertainty and weakness in the US dollar, but a surge in crude oil prices following an escalation in the US-Iran conflict intensified inflation concerns.
This led to markets increasing their expectations of a Federal Reserve rate hike in September, resulting in a rise in US Treasury yields and strengthening of the dollar that outweighed demand for gold as a safe-haven asset.
Gold futures on the Multi Commodity Exchange edged up 0.03% to Rs 1,52,815 on Friday, while silver futures slipped 0.07% to Rs 2,37,500.