Gold and silver prices climbed on Friday, October 9, as a weaker US dollar and falling Treasury yields boosted demand for precious metals. On the COMEX, December gold futures rose $40.10, or 0.96%, to $1,997.10 per ounce, while silver futures gained $0.971, or 1.63%, to $60.395 per ounce. The gains were supported by a pause in the dollar’s rally, making bullion more affordable for investors holding other currencies.
The price movements were influenced by a decline in the 10-year US Treasury yield, which reduced the opportunity cost of holding non-interest-bearing assets like gold. However, concerns over persistent inflation and potential further rate hikes by the Federal Reserve could cap the rally. St. Louis Fed President Alberto Musalem hinted that more rate increases may be needed to control inflation, though no specific action was mentioned for the upcoming meeting.
Geopolitical developments in West Asia also played a role in shaping market sentiment. US President Donald Trump indicated that no attack on Iran was planned before the November elections, suggesting ongoing diplomatic discussions. Any escalation in tensions could boost safe-haven demand for gold, while signs of easing tensions might reduce its appeal.
For Indian investors, factors like international bullion prices, US dollar movements, Treasury yields, and the rupee’s strength will be crucial. Domestic prices are also affected by currency fluctuations, import duties, taxes, and local market premiums.