Gold Falls 2% on US Rate Hike Fears and Crude Oil Surge

Gold prices have declined nearly 2% over the past week due to rising expectations of a Federal Reserve rate hike and elevated crude oil prices, causing investors to shy away from precious metals.

The MCX gold futures expiring in October fell by 0.08%, while MCX silver futures (September) shed 0.04%. The price of 10 grams of 24-carat gold stood at Rs 1,51,938 on Friday, down from Rs 1,54,884 last week.

The surge in crude oil prices above $104 a barrel, up 9.6% over the past five sessions and nearly 16% over the month, has heightened inflation concerns. This led to increased expectations of a Federal Reserve rate hike, putting pressure on precious metals.