Gold Prices Plummet as Strong Dollar, Higher Yields Weigh On Demand

Gold and silver prices plummeted on September 28 as a stronger US dollar, higher US yields, and rising oil weighed on demand.

The Multi Commodity Exchange (MCX) saw October gold futures fall by 2.13 per cent, or Rs 3,214, to Rs 1,47,667 per 10 grams. December silver futures declined by 2.83 per cent, or Rs 6,661, to Rs 2,28,035 per kg.

In the international market, Comex gold fell 2.11 per cent to $4,197.40 an ounce, while silver declined 3.59 per cent to $62.47 an ounce.

The decline was attributed to several factors, including expectations of another interest rate hike by the US Federal Reserve and rising US bond yields. The rise in crude oil prices also contributed to the pressure on precious metals.