Gold Prices Plunge as US Yields Rise and Rate Hike Bets Intensify

Gold prices have been under pressure due to rising US bond yields and bets of a Federal Reserve rate hike. MCX gold futures were trading at Rs 1,50,390 per 10 grams on September 2, down 0.88 percent from the previous close, and nearly 9 percent lower than its August peak.

The World Gold Council noted that tensions in West Asia have pushed crude oil prices higher, raising inflation expectations and increasing the likelihood of a Fed rate hike. The CME FedWatch Tool now indicates a 68 percent probability of a rate hike this month, up from 35 percent last week.

Rishabh Raj of Outlook Money spoke to Gurmeet Singh Chawla, managing director at Master Portfolio Services, who said that investors should not put their entire investment into gold at once. Instead, they can spread it out over several months using a systematic investment plan (SIP).