Precious Metals Tumble as Rate Hike Expectations Rise

Precious metals like gold and silver are under pressure as US Treasury yields rise and expectations of a September rate hike increase.

The price of MCX gold fell 1.14% to Rs 154,496 per 10 grams, while MCX silver futures dropped 1.28% to Rs 239,341 per kg by 9:10 am on Monday.

Silver ETFs were hit particularly hard, with Nippon India Silver ETF (Silver BeES) falling 4.06%, SBI Silver ETF declining 4.05%, and Tata Silver ETF dropping 3.98% in value.

The sell-off is largely due to higher crude oil prices and rising bond yields, which can fuel inflation and make the Federal Reserve less willing to cut interest rates or more inclined to keep them higher for longer.