Forex
Gold Prices Slump Amid Oil Spike and Strong US Dollar
Gold prices in India plummeted by Rs 500 to Rs 1,55,400 per 10 grams on Monday due to a surge in crude oil prices and a strong US dollar.
The global spot price of gold declined by USD 57.22 (1.3%) to USD 4,291.71 per ounce, while silver fell nearly 3% to USD 62.82.
Oil prices reached a four-month high of USD 103 a barrel after Saudi Arabia shut its East-West pipeline following drone attacks, adding to inflation worries and further pressuring demand for gold and silver.
Akshat Siddhant, Lead Quant Analyst at Mudrex, said that investors are pricing in a probable Fed rate hike, which is contributing to the decline in gold prices.