Gold Prices Plummet as Fed Hawkishness Weighs on Bullion

Gold prices plummeted nearly 2% on Friday as strong US inflation data and a hawkish speech by Federal Reserve Chair Kevin Warsh put pressure on bullion.

The MCX gold futures expiring in October dropped 1.63%, while the MCX silver futures for September shed 1.66%. The price of 10 grams of 24-carat gold was at Rs 1,59,578, down from Rs 1,62,603 seen on Monday.

The rally earlier this week came to an end as July's US personal consumption expenditures (PCE) inflation reading came in at 3.7% year-on-year, along with strong US labour and trade data pointing to a stronger-than-expected economy.