Gold Prices Plunge Rs 1,500 as Fed Hawks Take Hold

Gold prices in India dropped by Rs 1,500 to Rs 160,900 per 10 grams on Monday, extending their losing streak for a fourth consecutive session.

The decline is attributed to hawkish statements from the Federal Reserve and rising oil prices fueling market expectations of an imminent interest rate hike.

Gaurav Garg, head of research at Lemonn Markets Desk, said that gold prices remained under pressure after Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium increased expectations of an interest rate hike in September meeting.

The bullion market also took cues from rising oil prices after fresh US-Iran military strikes, with higher energy rates adding to inflation concerns and potentially strengthening the case for tighter monetary policy.