Gold Prices Plummet as Stronger Dollar and US Bond Yields Weigh on Bullion

Gold and silver prices saw a decline on September 11 as rising US bond yields and a stronger dollar weighed on bullion. The Comex gold futures price fell nearly 1% to $4,365 per ounce, while silver declined 1.58% to $63.90 per ounce.

The domestic MCX gold futures for the October contract closed the session 0.09% lower to Rs 1,52,200 per 10 grams, and silver edged 4.24% down to Rs 2,33,850 per kilogram. Jateen Trivedi, VP Research Analyst at LKP Securities, said that higher crude prices are keeping inflation concerns elevated, increasing expectations of a tighter Fed policy and weighing on bullion.

Gold is likely to remain under pressure at higher levels amid a stronger dollar and expectations of rate hikes, according to Trivedi. The gold range can be seen between Rs 1,51,500 and Rs 1,55,000. Meanwhile, the dollar gained 38 paise to close at $95.46 (provisional) against the rupee on Thursday.