Gold, Silver Prices Plummet on Fed Hike Expectations
Gold and silver prices have fallen on the Multi Commodity Exchange (MCX) due to market expectations of an imminent interest rate hike by the US Federal Reserve. The chances of a 68% hike were noted in the CME FedWatch Tool. This move makes gold and silver less attractive compared to other investments. Additionally, the strong US dollar has reached a two-week high, increasing the cost of bullion for buyers outside America. Rising oil prices and global uncertainty from U.S.-Iran tensions have also contributed to the decline.
The 1.06% drop in gold futures means that they are now priced at ₹1.50 lakh per 10gm, while silver has fallen by 1.38% to ₹2.32 lakh per kg. The upcoming US jobs report on Friday may further influence future Fed decisions and affect the prices of precious metals.