Volatility in Bullion Markets: Gold and Silver Prices See Slight Rise Amid Changing Interest Rate Expectations
Gold and silver prices saw some volatility on Friday, September 25, due to changing US interest rate expectations and a stronger dollar. On the Multi Commodity Exchange (MCX), gold futures rose ₹150 per 10 grams to ₹1.50 lakh, while December silver futures gained ₹368 per kg to ₹2.33 lakh per kg.
Gaurav Garg, Head of Research at Lemonn, attributed the pressure on precious metals to a stronger dollar and elevated US Treasury yields above 5 percent. Vikram Subburaj, CEO of Giottus.com, also pointed out that higher US yields reduce the appeal of non-yielding assets like gold and silver.
Subburaj noted that a weaker rupee can cushion domestic gold prices when international bullion prices decline, but also increases import costs for precious metals. Darshan Desai, CEO of Aspect Bullion & Refinery, expects price swings to continue, advising traders to manage inventory carefully and respond to actual physical demand.
Gold and silver are also being influenced by broader commodity-market developments, including the recent easing in crude oil prices. Elevated US yields remain an important risk for inflation, the rupee, and MCX commodities, according to Garg.