Oil Price Surge Triggers Gold, Silver Decline Amid Inflation Worries

Gold and silver prices declined on September 14 as oil prices surged due to fresh Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf. This move compounded supply concerns following the closure of a key Saudi oil pipeline, fueling inflation worries and boosting expectations that the US Federal Reserve may raise interest rates at its policy meeting this week.

Gold October 5 futures on the Multi Commodity Exchange (MCX) dropped 1.26% to ₹1,50,856 per 10 grams, while silver December 4 futures fell 1.90% to ₹2,30,513 per kg, according to Jateen Trivedi, VP Research Analyst at LKP Securities.

The upcoming Fed policy decision could keep gold under pressure, with the possibility of a rate hike or hawkish commentary from the Fed chair, Trivedi said. The yellow metal can be seen in the range of ₹1,49,000-₹1,54,000, he added.