Gold Prices Plummet as Fed Rate Hike Bets Rise

MCX gold prices closed lower for the week as traders scaled back their bullion bets following hawkish signals from US Federal Reserve officials, higher US Treasury yields, and rising global inflationary pressures.

The yellow metal dropped ₹3,500 per 10 grams for the week, falling to ₹1,50,891. This decline was more than double the ₹1,597 gain recorded in the previous week.

September's gains turned into losses due to concerns over inflation and interest rate hikes. The biggest challenge for gold has been rising bond yields, driven by elevated crude oil prices, raising fresh fears that the US Federal Reserve could further tighten interest rates.