Gold and Silver Prices Crash on Rising US Treasury Yields and Higher Crude Oil

The gold and silver prices crashed recently due to rising US Treasury yields, higher crude oil prices, a stronger dollar outlook, and growing expectations of another US Federal Reserve rate hike. On the domestic futures market, MCX Gold October 2026 futures fell ₹3,214 to ₹1,47,667 per 10 grams, while MCX Silver September 2026 futures declined ₹6,661 to ₹2,28,035 per kg.

The sell-off was also visible in international markets. Spot gold fell around 1.5% to $4,223.95 per ounce, while spot silver declined 2.6% to $62.64 per ounce.

The latest decline in precious metals is being driven by a combination of macroeconomic and geopolitical factors. The sharp rise in US Treasury yields is one of the biggest pressures on gold. According to market commentary, the 10-year US Treasury yield climbed to around 5.13%, while the 30-year Treasury yield reached approximately 5.44%. Gold does not generate interest income, so when bond yields rise, investors may find interest-bearing assets relatively more attractive, increasing the opportunity cost of holding gold.

Higher crude oil prices are also fueling inflation concerns, and for precious-metal traders, the concern is that persistent inflation could make central banks more cautious about cutting interest rates or potentially encourage tighter monetary policy. This creates an unfavorable environment for non-yielding assets such as gold.