Indian Investors Flee Gold, Silver Amid Rising US Rate Hike Bets

Global market sentiment shifted on Monday, September 7, 2026, after fresh US economic data revealed surprisingly robust employment figures for August. The US added 162,000 jobs, leading investors to adjust their expectations for the Federal Reserve's upcoming policy meeting scheduled for September 15-16.

The odds of an interest rate hike later this month have risen to 60%, according to financial markets. This increase in interest rates typically leads to higher yields on government bonds, making gold and silver less attractive compared to bonds during periods of rising interest rates.

The strengthening US dollar has also placed downward pressure on the prices of precious metals. Domestic ETFs tracking these commodities mirrored the global trend, with ICICI Prudential Gold ETF, SBI Gold ETF, and Nippon India ETF Gold BeES recording declines of approximately 1.6% to 1.7%. Silver-focused instruments, including Nippon India Silver ETF and Tata Silver ETF, also faced selling pressure, sliding by over 1.5% during the session.