Gold and silver prices are under pressure after a sharp fall in the latest trading session. Gold fell 0.8% to USD 4,417.04 per ounce, which is the lowest in two weeks, after a US Fed rate hike. Rising oil prices amid renewed US-Iran tensions contributed to this downfall. Similarly, Silver, Platinum, and Palladium fell by 0.4%, 1.3%, and 2.5%, respectively.
The fall came as traders changed their view on US interest rates. Expectations of a possible Federal Reserve rate hike put pressure on gold. The yellow metal does not offer interest, so higher rates can make it less attractive to investors. US jobs data is now in focus. Strong job numbers could support higher-rate bets and put more pressure on gold. Inflation figures from the Eurozone and Germany are also important to watch. US non-farm payroll data due towards the end of the week is another major indicator that should be watched.
Gold prices in India do not always move in line with global prices. The rupee is a key reason. When the rupee falls against the US dollar, imported gold becomes more expensive in India.
On Monday, 1 gm of gold was Rs. 14,370 for 22Kt and Rs. 12,140 for 18Kt in Chennai. Higher oil prices are adding to the pressure on the currency. At the same time, expectations around the Fed are bolstering the dollar. This mix could keep Indian gold prices higher even if global gold prices see further weakness.
The recent fall does not end gold’s long-term appeal. Any fresh rise in global uncertainty or a softer US jobs report could bring buyers back. For now, traders are watching US data and Fed signals closely. These factors may determine whether gold falls further or resumes its climb toward record levels.