Gold Price / Gold Slips as Fed Rate Hike Bets Rise

New Delhi, Sep 14: Gold prices slipped at the start of the week as investors braced for tighter US monetary policy, with hotter‑than‑expected inflation data reinforcing bets on a Federal Reserve rate hike.

Market sentiment turned cautious, and traders now see nearly an 88 per cent probability of a September increase — the Fed’s first in three years.

On the domestic front, trading on the Multi Commodity Exchange (MCX) will remain closed during the morning session for Ganesh Chaturthi, with gold and silver futures active only between 5 pm and 11:30 pm.

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MCX gold futures expiring in October stood at ₹1,52,655, while silver futures for September delivery were quoted at ₹2,34,886 per kg.

Spot gold hovered near $4,340 an ounce, down 0.2 per cent on the day and 1.8 per cent for the week. Silver slipped 0.8 per cent to $64 an ounce, while platinum and palladium also weakened.

Gold had ended Friday’s session higher but still closed the week lower, pressured by inflation concerns. Data released Friday showed underlying inflation edged up in August, with the core consumer price index — excluding food and energy — rising 0.3 per cent from the previous month.

Meanwhile, fears of supply disruptions in global energy markets added further pressure. West Texas Intermediate (WTI) crude rallied above $107 a barrel as shipping risks escalated in the Red Sea.

Houthi forces seized key Yemeni ports along vital oil trade routes, while Saudi Arabia temporarily shut its East‑West pipeline after drone strikes. In the Strait of Hormuz, a merchant vessel was hit on Sunday, leaving one dead and three injured, according to Iranian authorities.

The crude rally has intensified inflation worries, weighing further on gold and silver as investors brace for tighter US monetary policy.

(IANS)