Gold, Silver, Oil Prices Plummet Amid Reduced Fed Hike Expectations

Global markets experienced significant fluctuations in prices for various assets, including gold, silver, crude oil, and natural gas. Gold prices settled lower by 0.91% at Rs 153,466 due to profit-taking pressure after US inflation data reduced expectations of an imminent Federal Reserve rate hike.

The US Consumer Price Index (CPI) inflation eased to 3.4% year-on-year in July from 3.5% in June, matching market expectations and marking a second consecutive month of cooling annual inflation. Markets now price a 36% probability of a rate hike at the September Fed meeting, down sharply from around 55% a week earlier.

Crude oil prices settled lower by 1.35% at Rs 7,821 due to downward revisions to global oil demand forecasts outweighed supply concerns arising from the ongoing US-Israeli war on Iran. OPEC lowered its 2026 global oil demand growth forecast to 580,000 barrels per day, marking the fourth consecutive downward revision.