Gold Prices Plunge as Fed Rate Hike Expectations Soar Amid Crude Oil Price Rally

Gold prices have taken a hit, dropping almost 2% over the past week due to rising concerns about a Federal Reserve rate hike. The increase in crude oil prices has also played a significant role in driving investors away from precious metals.

According to data published by the India Bullion and Jewellers Association (IBJA), MCX Gold stood at Rs 1,52,655 per kg on Friday, down from Rs 1,54,884 seen last Friday. The price of 10 grams of 24-carat gold was also at Rs 1,51,938, a decline from the previous week's value.

The elevated crude oil prices have led to heightened inflation concerns, pushing expectations of a Federal Reserve rate hike sharply higher. This pressure has been evident in various reports, including the August CPI report, which showed headline inflation up 0.4% month-on-month and 3.4% year-over-year.