Indian Gold Prices Plummet Amid US Rate Hike Bets

Gold prices in India fell on Monday, September 7, as stronger US jobs data increased expectations of a Federal Reserve interest rate hike. The MCX October gold futures traded at ₹1,52,274 per 10 grams, down ₹493 or 0.32% from the previous close. This decline came after global gold prices weakened following the release of stronger-than-expected US employment data.

According to Reuters, traders raised the probability of a September US rate hike to 58.4%, up from 55% before the jobs report. Higher interest rates typically weigh on gold as it does not provide interest income. The recent correction in gold prices has been attributed to these rising expectations of tighter Federal Reserve policy.

Despite the decline, 24K gold continues to trade around ₹1.55 lakh per 10 grams across major Indian cities. MCX gold has weakened below ₹1.53 lakh during Monday's session. The conflict in West Asia continues to create safe-haven demand, limiting the downside for bullion.

City prices differ, with retail gold rates varying between cities and jewellers. Buyers should compare the quoted rate before placing an order, as jewellery costs are higher than the headline rate due to GST, making charges, and other costs.