Gold Prices Plunge Over Rs 10,700 as Market Sentiment Turns Cautious

MCX gold prices have plummeted over Rs 10,700 from their recent peak of Rs 1,63,229 per 10 grams on August 24. The price drop to Rs 1,52,514 per 10 grams has analysts attributing it to cautious market sentiment driven by the possibility of a September Fed rate hike. Higher US yields and a stronger dollar are also making it challenging for gold to find support.

A report from Augmont Bullion noted that gold gained 9.4% in August, but momentum waned towards the end of the month due to inflation concerns sparked by oil price hikes. The key market trigger now remains this week's US Non-Farm Payrolls and Unemployment data, which could influence the Fed's rate outlook.