Gold Prices Pressured by Crude Surge and Fed Rate Hike Expectations

Gold prices declined as surging crude oil prices, rising US Treasury yields, and a strong dollar fueled market expectations of a Federal Reserve rate hike at the upcoming September meeting.

COMEX gold finished 1.50% lower at $4,408.90 per ounce, while MCX gold ended higher at ₹1,52,784 per 10 gm due to depreciation in the Indian rupee against the dollar.

Annual producer inflation accelerated to 5.4%, reflecting energy cost impacts and driving CME FedWatch rate hike expectations to roughly 90%.