Gold Prices Plummet Amid Fed Rate Hike Concerns and Crude Oil Surge

Gold prices dropped nearly 2% on a weekly basis due to concerns about a potential US Federal Reserve rate hike and increased crude oil prices. The price of MCX gold futures expiring in October declined by 0.08%, while MCX silver futures (September) shed 0.04%. The price of 10 grams of 24-carat gold was at Rs 1,51,938 on Friday, down from Rs 1,54,884 seen last Friday.

The surge in crude oil prices, which rose above $104 a barrel, has increased expectations of a Federal Reserve rate hike. The heightened inflation concerns due to the crude oil price rally have driven gold and silver prices lower for the third consecutive week. However, both staged a notable rebound on Friday despite a hotter headline inflation reading.

The August CPI report showed headline inflation up 0.4% month-on-month and 3.4% year-on-year, with energy prices providing a significant push. US diesel prices also climbed above $6 a gallon for the first time, underscoring the growing inflationary impact of higher energy costs.