Gold, Silver Prices Decline as Stronger US Dollar Weighs on Investor Sentiment

On September 22, gold and silver prices declined due to a stronger US dollar and hawkish signals from the Federal Reserve. The Multi Commodity Exchange (MCX) saw gold futures for October delivery initially gain Rs 403 but then reverse their gains and fall Rs 914, or nearly 1%, to Rs 1,52,180 per 10 grams.

Pinky Yadav, a commodity fundamental analyst at Choice Broking, said MCX gold extended its losses as the dollar index strengthened to around 100.3 following hawkish comments from the Federal Reserve. Kaynat Chainwala, AVP - Commodity Research at Kotak Securities, said gold was trading near $4,350 an ounce in overseas markets.

Analysts expect bullion markets to remain volatile and range-bound in the near term, influenced by the direction of the US dollar, bond yields, developments in the West Asia conflict, and crude oil prices.