Gold Prices Plummet by Rs 500 Amid Global Market Sell-Off
Gold prices slid by Rs 500 to Rs 1,55,400 per 10 gram in New Delhi on Monday as global markets experienced a sell-off. The rise in crude oil prices and the strengthening US dollar weighed heavily on the bullion.
The yellow metal had closed at Rs 1,55,900 per 10 gram on Friday, but lost ground due to increased demand for the US currency. Spot gold declined USD 57.22, or 1.3 percent, to USD 4,291.71 per ounce globally.
Akshat Siddhant, Lead Quant Analyst at Mudrex, attributed the decline in gold prices to investors pricing in a probable Federal Reserve rate hike and higher oil prices adding to inflation worries.
The sharp rise in crude oil to USD 103 a barrel has further complicated the interest-rate outlook, with ANZ forecasting three 25-basis-point Federal Reserve rate increases by March 2027. Despite this, ANZ expects persistent geopolitical uncertainty to strengthen gold's safe-haven appeal.