Gold, silver ETFs tumble up to 2% on Fed rate-hike bets

New business data points to the fact that Gold and silver exchange-traded funds (ETFs) came under sharp selling pressure on Monday, falling as much as 2 percent, as firm US jobs data reinforced expectations of elevated interest rates.

Market participants were additionally awaiting key US inflation data due later the current week for further clarity on the The US central bank's policy path.

All gold ETFs traded in the red. ICICI Prudential Gold ETF declined 1.7 percent, SBI Gold ETF declined 1.72 percent and Nippon India ETF Gold BeES eased 1.6 percent. Tata Gold ETF was down 1.54 percent.

A similar decline was noted in silver ETFs. Nippon India Silver ETF eased 1.56 percent, Tata Silver ETF declined 1.55 percent and ICICI Prudential Silver ETF eased 1.45 percent.

Bullion declined as much as 1 percent to below USD 4,400 an ounce. The metal had posted a similar dip in the previous session after data revealed US nonfarm payrolls surged in August and the unemployment rate held steady, strengthening the case for the The US central bank to mobilize rates at its September 15-16 meeting.

Traders additionally increased bets on a interest-rate gain, pricing in around a 60 percent chance of an gain in September.

Elevated borrowing costs typically weigh on bullion as the precious metal does not pay interest.

Adding to inflation concerns, Iran stated it targeted three oil tankers in the Strait of Hormuz as well as a number of US-linked ships in retaliation for American attacks on vessels over the weekend.