Gold and Silver Prices Plunge as US Yields Rise and Rate Hike Expectations Grow

Gold and silver prices plummeted on September 28 due to rising US Treasury yields, higher crude oil prices, and increased expectations of another Federal Reserve rate hike. According to Reuters, gold fell more than 2% during Monday trading as higher oil prices strengthened expectations of further US rate hikes.

The sharp rise in US Treasury yields is a major factor behind the precious-metal sell-off, with Ashish Rajodiya of PL Capital stating that 'the sharp rise in US Treasury yields was a major source of pressure on gold.'

Jateen Trivedi of LKP Securities added that precious metals are facing pressure as crude remains firm, while uncertainty surrounding the US-Iran situation is keeping risk sentiment volatile.

The stronger dollar also puts pressure on dollar-denominated commodities, including gold and silver. On MCX, September 2026 silver futures fell Rs 6,661 to Rs 2,28,035 per kg, while October 2026 gold futures declined Rs 3,214 to Rs 1,47,667 per 10 grams.

The near-term direction of gold and silver is likely to remain sensitive to movements in crude oil, the US dollar, and Treasury yields. Investors will be watching upcoming US economic data, including employment and inflation indicators, as stronger-than-expected data could influence expectations for further Federal Reserve tightening.