Gold and Silver Prices Drop Amid Stronger US Dollar and Muted Demand
Gold and silver prices saw a decline on October 5, 2026, driven by muted demand and a stronger US dollar. On the Multi Commodity Exchange (MCX), December gold futures dropped by Rs 1,020, or nearly 1%, to Rs 1,49,370 per 10 grams. This follows a 2% drop during the previous week, as domestic markets were closed on Friday for Mahatma Gandhi Jayanti.
Analysts noted that gold has been trading in a consolidation phase due to a firm US dollar and elevated bond yields. The dollar index hovered near an 18-month high of 102.37, adding pressure on bullion. Internationally, Comex gold futures for December delivery were marginally higher at $4,163.50 per ounce, supported by a weak US jobs report that lowered expectations of an October rate hike by the US Federal Reserve to below 20%. However, markets still assign a 70% probability to a rate hike in December.
Silver also experienced a sharp fall, declining by 6.7% last week to $60.41 per ounce. Analysts attributed this to elevated US Treasury yields, which held around 5.2%. The unresolved US-Iran situation could further contribute to volatility in precious metals. Market participants are now watching Services PMI readings from major economies, US trade data, and mid-month consumer sentiment figures for fresh direction.
Gold prices across major Indian cities saw slight variations, with 24K gold priced at Rs 14,933 per gram in Delhi and Rs 14,918 per gram in cities like Mumbai, Chennai, and Bengaluru. Silver prices varied between Rs 235 and Rs 245 per gram across different cities.