Gold Prices Drop for 6th Day Amid Rate Hike Fears - Rediff MoneyWiz

AI desk brief

Gold and silver extended a sharp corrective move, with domestic gold in India falling Rs 2,100 to Rs 1,56,100/10g for a sixth straight session and silver sliding Rs 5,000 to Rs 2,35,500/kg. Gold has now lost Rs 11,000 in six trading days from Rs 1,67,100 on Aug. 25, while silver hit a two-week low. The pressure point is rising Federal Reserve rate-hike fears, which are outweighing the usual safe-haven bid from West Asia tensions.

Market participants cited hawkish Fed commentary, higher oil prices and the inflation impulse as the key drivers. HDFC Securities said spot gold fell to its lowest in more than three weeks, while Mirae Asset ShareKhan flagged that gold remains vulnerable as investors wait for upcoming US labour-market data for clues on the Fed path. The article also notes that global gold-backed ETFs flipped to net outflows after seven straight inflow sessions as rate-hike concerns resurfaced.

Near term, the setup remains bearish for precious metals if US data keeps the market leaning toward tighter policy and higher real rates. Geopolitical escalation is cushioning the downside, but for now the macro/rates trade is dominant. Silver is under additional pressure from its higher sensitivity to inflation and industrial-energy costs, while any softer US labour read or pullback in oil could stabilize the complex.