Oil Price Surge Drives Down Gold Prices Globally

Gold prices declined in India and globally on Monday due to higher oil prices and a strong US dollar. The yellow metal fell Rs 500 to Rs 1,55,400 per 10 grams in Delhi as crude oil surged to USD 103 a barrel, a fresh four-month high.

The rise in oil prices has added to inflation worries, putting further pressure on demand for gold and silver, said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex. This led to a sell-off in global markets, with spot gold declining USD 57.22, or 1.3 per cent, to USD 4,291.71 per ounce.

Silver bucked the trend and held steady at Rs 2,34,600 per kilogram (inclusive of all taxes), according to local traders. Globally, silver tumbled nearly 3 per cent to USD 62.82 as investors priced in a probable Fed rate hike. The Australia and New Zealand Banking Group (ANZ) forecasted three 25-basis-point Federal Reserve rate increases by March 2027.