Gold, Silver Prices Plummet on MCX Amid Inflation Concerns

Gold and silver prices plummeted on the Multi Commodity Exchange (MCX) on September 28, with gold declining by 2.07% to ₹1.50 lakh per 10 grams and silver falling by 3.46% to ₹2.26 lakh per kg.

The decline comes amid weaker spot demand and a broader sell-off in precious metals, driven by concerns over inflation and expectations that the US Federal Reserve could maintain a tighter monetary stance.

Nirpendra Yadav, Senior Research Analyst at Bonanza, attributed gold's break below $4,200 an ounce to a shift in the near-term macro environment, citing higher oil prices, rising US Treasury yields, and a strengthening dollar as factors contributing to the decline.

Yadav cautioned investors to track key indicators such as the US dollar, Treasury yields, oil prices, and upcoming US inflation and employment data, which could influence expectations around the Fed's next moves.