Gold Falls 4.2% to $4,163 Amid Rate-Hike Bets and Stronger Dollar
Gold and silver prices plummeted last week due to rising expectations of another US Federal Reserve rate hike, a stronger dollar, and higher Treasury yields. On Monday, 28 September, gold fell by around 4%, slipping below $4,200 an ounce, while silver dropped more than 5% and moved below $62 an ounce.
The week started with MCX gold trading around ₹1,46,804 per 10 grams and December silver at about ₹2,27,442 per kg. By Thursday, 1 October, December gold futures had recovered slightly to around ₹1.49 lakh per 10 grams, while December silver remained lower at about ₹2.24 lakh per kg.
The domestic bullion market remained closed on Friday, 2 October, due to the Gandhi Jayanti holiday. The rupee opened at 96.05 per dollar on 29 September, down 7 paise from Monday's close of 95.98, as higher US bond yields and elevated oil prices weighed on the domestic currency.
Investments in physically backed gold exchange-traded funds (ETFs) were positive for the tenth consecutive week, with $1.72 billion invested and redemptions to the tune of $1.59 billion. The global silver market remained structurally undersupplied for a sixth consecutive year, with 762 million ounces drawn from stocks since 2021.