Gold Prices Plunge as Fed Rate Hike Expectations Rise

Gold prices plummeted nearly 3% on a weekly basis due to rising expectations of a US Federal Reserve rate hike. On Friday, MCX gold futures (October) inched up 0.03%, while MCX silver futures (September) shed 0.07%. The price of 24-carat gold dropped to Rs 1,54,884 per 10 grams from last week's Rs 1,59,578, according to data published by the India Bullion and Jewellers Association.

The precious metal touched a three-month high after a midweek rebound, but a final pullback on Friday due to rising inflation concerns. The escalation of the US-Iran conflict led to higher crude oil prices, weighing on gold's price. Analysts said that immediate resistance is placed at $4,500-$4,530 zone for Comex Gold and Rs 1,56,500-Rs 1,57,000 zone for MCX gold.