Gold, silver fall up to 3% on oil surge, rate-hike bets; support levels in focus

Gold and silver prices plunged up to 3% on Monday as surging oil prices fueled inflation concerns and boosted expectations of further US Federal Reserve rate hikes, triggering a broad precious metals sell-off. On the MCX, October gold futures fell 2.42% to Rs 1,47,225 per 10 grams, while December silver dropped 3.22% to Rs 2,27,133 per kg. Internationally, spot gold declined 1.5% to $4,223.95 per ounce, with silver, platinum, and palladium also falling sharply. Gold broke key support levels, slipping below Rs 150,000 and its 100-day EMA. Market pricing indicates a 66% probability of another Fed rate hike in October, with higher bond yields and a firm dollar weighing on non-yielding bullion. Analysts note immediate gold support at Rs 147,300–Rs 148,000, with a break below potentially exposing further downside toward Rs 146,000.