Gold Prices Rise Amid Changing Expectations on Interest Rates
Gold and silver prices rose on Friday (September 25) amid changing expectations around US interest rates, a stronger dollar, and elevated Treasury yields. On the Multi Commodity Exchange (MCX), gold futures gained ₹150 to ₹1.50 lakh per 10 grams in the October contract, while December silver futures increased by ₹368 to ₹2.33 lakh per kg.
According to Gaurav Garg, Head of Research at Lemonn, both metals remained under pressure from a stronger dollar and higher US yields above 5%. Vikram Subburaj, CEO of Giottus.com, stated that the global interest-rate outlook, a stronger dollar, and higher US yields were key factors weighing on precious metals.
Subburaj also mentioned that a weaker rupee can cushion domestic gold prices when international bullion prices decline, while increasing the import cost of precious metals. Darshan Desai, CEO of Aspect Bullion & Refinery, said buyers at current high price levels are becoming more selective and waiting to see how prices move.
The gold futures in overseas markets were up 0.01% at $4,275.38 per ounce, while silver futures rose 0.02 percent to $63.80 per ounce.