Precious Metals Tumble Amid US Fed Rate-Hike Fears and Crude Oil Price Surge

The US Federal Reserve's interest-rate hike fears sent gold and silver prices tumbling on Monday. The precious metals market saw a sharp correction, with spot gold falling 2.1% to $4,198.10 an ounce, its biggest daily decline since September 1. Spot silver suffered an even steeper fall, losing 3.4% to $62.08 an ounce.

The sell-off in precious metals came as crude oil prices climbed after US President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz. Brent crude futures jumped $3.43, or 3.29%, to $107.75 a barrel, keeping concerns over energy-driven inflation elevated.

The losses were mirrored in Indian equity markets, with the Sensex crashing 975 points, or 1.3%, and the Nifty falling 310 points. The SBI Silver ETF was the biggest loser among major precious-metal ETFs, falling 3.59% to Rs 216.23.