Gold, Silver Prices Fall Amid Rising Bond Yields and Dollar

Gold and silver prices fell in both domestic and international markets on Tuesday, September 29, due to rising global bond yields and a stronger dollar.

In India, gold futures on the Multi Commodity Exchange (MCX) opened lower at ₹1,48,766 per 10 gram, down from the previous close of ₹1,48,897. The benchmark December gold contract also fell ₹79 to ₹1,48,818 by the time of writing.

Silver futures on MCX were trading even lower, opening at ₹2,25,945 per kg and dropping to ₹2,25,321 by the end of the session. On Comex, gold futures opened near $4,160 per ounce, while silver slipped to around $61 per ounce.

Ajay Kedia, director of Kedia Advisory, noted that rising bond yields and expectations of a hawkish Federal Reserve stance were likely to keep the market under pressure in the near term. He also pointed out support levels for gold at ₹1,47,570 and resistance at ₹1,50,610.

Vikram Subburaj, CEO of Giottus.com, attributed the decline in gold and silver prices to rising global bond yields and a stronger dollar, as well as concerns about inflation. He noted that elevated crude oil prices were increasing worries about inflation, which could keep US monetary policy tight for longer.