Gold Crashes Rs 2,600 as Fed Hawkish Comments Boost Interest Rates

New Delhi - Gold and silver prices plummeted on Monday, August 31, at the Multi Commodity Exchange (MCX), falling nearly 2% as investors booked profits amid weak global cues.

Gold October futures dropped more than Rs 2,600 to hit Rs 1,53,640 per 10 grams in early deals, while silver September futures plunged over Rs 4,200 to Rs 2,32,501 per kg.

The domestic decline mirrored weakness in the international bullion market following US Federal Reserve Chair Kevin Warsh's hawkish comments at the Jackson Hole Economic Policy Symposium.

Warsh indicated that the Fed could have more work to do if inflation fails to move convincingly towards its 2% target, increasing market expectations of another rate hike and raising interest rates.