Gold Prices Plunged 2% Amid Rising Oil Prices and Fed Rate Hike Fears
Key Highlights
- MCX Gold futures for October 2026 delivery declined Rs 3,214 to Rs 1,47,667 per 10 grams.
- US gold futures declined 1.5% to $4,257.90 per ounce.
- Spot gold was down 1.5% at $4,223.95 per ounce as of 0117 GMT.
Gold prices plummeted on Monday, with MCX Gold futures for October 2026 delivery declining Rs 3,214 to Rs 1,47,667 per 10 grams, as oil prices surged and inflation worries intensified.
According to Ashish Rajodiya, Head – Commodities, PL Capital, the pressure on gold prices is coming from a sharp US Treasury bond selloff, with the 10-year yield at 5.13%, its highest since 2007, and the 30-year at 5.44%, its highest since 2004.
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“Elevated crude prices, rather than boosting gold's safe-haven appeal as they typically would during geopolitical stress, are instead reinforcing the case for further Fed tightening, feeding a stronger dollar and steeper yield curve that both work against non-yielding bullion,” he says.
Gold prices have found a footing, with support levels at Rs 1,48,000 and Rs 1,46,000 providing a cushion. Conversely, resistance is looming at Rs 1,52,500 and Rs 1,55,000, where prices may face increased pressure.
The trajectory of the metal is poised on the intersection of two key events: the Federal Reserve's upcoming October rate decision and the potential for sustained US-Iran diplomatic engagement. Which could translate into a tangible de-escalation of tensions in the region.
Manoj Kumar Jain of Prithvi Finmart expects gold and silver to see continued volatility this week as traders track movements in crude oil prices and the dollar index. Along with geopolitical tensions and developments in the US-Iran peace talks.
Key Highlights
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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.
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