Gold Drops 1 Percent on Stronger Dollar Bond Yields Silver Gains
Gold prices dropped nearly 1% on the Multi Commodity Exchange (MCX) on Monday, October 5, while silver prices rose over 0.5%. The decline in gold was driven by a stronger US dollar and higher bond yields, while silver followed a firmer global trend.
On the MCX, December gold futures fell ₹1,020 to ₹1.49 lakh per 10 grams. The previous week had seen gold decline by ₹2,887, or around 2%, ending at ₹1.5 lakh per 10 grams. Meanwhile, December silver futures increased by ₹1,223, or 0.54%, to ₹2.27 lakh per kg. In overseas markets, silver futures gained 1.58% to $61.31 per ounce.
Analysts noted that gold prices have been consolidating due to a stronger US dollar and elevated bond yields. Kaveri More, Commodity Technical Analyst at Choice Broking, highlighted that the dollar index was near an 18-month high of 102.37, limiting gold's upside momentum. Ashish Rajodiya, Head, Commodities at PL Capital, expects gold to remain range-bound between ₹1.45 lakh and ₹1.51 lakh per 10 grams.
Global gold futures for December delivery were marginally higher at $4,163.50 per ounce in New York. Despite briefly crossing $4,200 an ounce on October 2, gold's recovery was constrained by elevated US Treasury yields, which stood around 5.2%. Physical gold demand in India remained steady but selective, with potential support from the upcoming festive and wedding season.