Gold prices fell to a one-year low on Friday as global tech stocks dropped. Spot gold fell 3.05% to $3,898.54 an ounce, while MCX silver December futures tumbled Rs 9,976. Many investors sold bullion as high oil prices raised inflation worries, causing gold to lose nearly 6% during October.
Gold dropped to its lowest level in a year as elevated oil prices raise inflationary concerns while traders sold the precious metal amid a global tech-stock rout.
On Friday, Spot gold fell much as 3.05% to $3,898.54 an ounce, the lowest since Oct. 30 last year, while silver tanked 5.55% to $49.27. Bullion prices in India dipped too, with MCX gold November futures contract declined 2.98% or Rs 4,206 to Rs 1,36,762 per 10 grams, while MCX silver December futures contract tumbled 5.27% or Rs 9,976 to Rs 1,79,477 per kg.
The decline in precious metals come amid ongoing tech selloff, while the possibility of renewed US military action against Iran pushed Brent crude to its highest since April, an inflationary pressure that has forced investors to redraw their expectations for interest rates.
Gold has lost nearly 6% in October amid worries over renewed fighting in the Middle East keep energy prices elevated. Silver tumbled more than 5% to $49.48 an ounce, resulting in a monthly decline of more than 17%, Bloomberg reported.