Gold Falls Below $4,400 as Stronger Dollar and Rising Yields Weigh on Bullion

Precious metals took a hit on September 10 as rising bond yields and a stronger dollar weighed on bullion. The prices of gold and silver plummeted, with Comex gold falling by 1.68 percent below $4,386 per ounce during the afternoon trade.

Meanwhile, silver declined by 5.37 percent, hovering just below $65 per ounce. The domestic gold futures for the October contract were down almost 1 percent to Rs 1,52,249 per 10 grams during the evening session, and silver slipped 3.63 percent to Rs 2,35,347 per kilogram (18:58 IST) from its previous close.

According to Jateen Trivedi, VP Research Analyst at LKP Securities, gold traded weakly and with volatility, giving up gains from higher levels as profit booking emerged amid a rise in bond yields and the Dollar Index. The dollar gained 38 paise to close at $95.46 (provisional) against the rupee on Thursday.

Trivedi noted that 'Higher crude prices are keeping inflation concerns elevated, increasing expectations of a tighter Fed policy and weighing on bullion.' He also predicted that gold is likely to remain under pressure at higher levels amid a stronger dollar and expectations of rate hikes. The gold range can be seen between Rs 1,51,500 and Rs 1,55,000.