Gold and Silver Prices Plunge on Weaker Spot Demand and Hawkish Fed Expectations
Gold and silver prices in India experienced pressure on September 15 due to weaker spot demand, selling by participants, and an unfavorable global macro environment. On the Multi Commodity Exchange (MCX), October gold futures fell ₹530 or 0.35% to ₹1.50 lakh per 10 grams, while December silver futures declined ₹1,411 or 0.61% to ₹2.31 lakh per kg.
Globally, gold futures were down 0.22% at $4,290.06 an ounce, and silver was trading 0.27% lower at $63.05 an ounce. According to Vedika Narvekar, Research Analyst, Commodities & Currencies at Anand Rathi Share and Stock Brokers, two factors are driving the recent weakness: higher crude prices following attacks on Saudi energy infrastructure and a rise in US Treasury yields.
Gaurav Garg, Head of Research at Lemonn, also pointed to the stronger dollar, Treasury yields near 5%, and expectations of a hawkish Fed decision as factors weighing on both gold and silver. Vikram Subburaj, CEO of Giottus.com, noted that the current move appears more like a correction within a broader high-price environment rather than a clear trend reversal.