Gold and Silver Prices Plummet Amid Stronger Dollar
The gold and silver markets experienced a significant downturn in the week ending September 25 due to the surge in the US dollar and elevated benchmark bond yields. Despite a minor festive bounce on Friday, domestic gold prices fell by 2.12% or ₹3,266 per 10 grams, while silver slid by 3.19% with a loss of ₹7,725 per kg.
The multi-commodity exchange (MCX) October gold futures closed at ₹150,924 per 10 grams, keeping the metal within distance of its all-time high of ₹163,437 reached in late August. Year-on-year figures show domestic gold trading more than 16% higher, driven by persistent safe-haven demand.
The hawkish stance of the US Federal Reserve indicated that benchmark interest rates would remain elevated for an extended period, leading to a reversal of previous gains and recording its largest weekly contraction in a month. The MCX Gold Futures slipped 2.12%, domestic retail 24K gold dropped 2.12%, international spot gold lost 2.15%, and COMEX Gold Futures fell 2.27%.