Gold Prices Plummet in India Amid Dollar Strength and Elevated Yields
Gold prices declined this week in India due to a firmer US dollar and higher US Treasury yields, which capped demand for the non-yielding precious metal amid ongoing geopolitical uncertainty.
The price of gold futures on MCX dropped by 1.16% during the week, while silver futures fell 1.13%. On Friday, gold futures stood at Rs 141,599 per kg, and silver futures were at Rs 217,488 per kg. The price of 10 grams of 24-carat gold was Rs 42,860 on Friday, down from Rs 144,532 at Monday's market opening.
The US Federal Reserve's decision to keep interest rates unchanged briefly caused gold prices to rise by around 2%, but they later retreated as yields and the dollar strengthened. Analysts believe that persistent inflation concerns linked to higher oil prices may continue to limit demand for precious metals, keeping US Treasury yields elevated.