Gold and Silver Prices Tumble Amid Rising Oil Prices and Stronger Dollar
Gold and silver prices dropped on Monday due to rising oil prices, a stronger US dollar, and higher bond yields that weigh on demand for non-interest-bearing assets. The COMEX gold price fell 1.57% to $4,253.40 an ounce, while the COMEX silver price declined 2.76% to $63.01 an ounce.
The decline comes after both precious metals recorded losses last week. COMEX gold futures for December delivery dropped 2.34% to settle at $4,321.20 an ounce, and silver fell 3.5% to $64.80 an ounce on the domestic market, MCX gold futures for October delivery declined nearly 2.3% to settle at around ₹1.5 lakh per 10 grams.
The shift in expectations around US interest rates is a key factor, with markets factoring in the possibility of another Federal Reserve rate hike in October. Higher interest rates and bond yields make non-interest-bearing assets like gold and silver relatively less attractive.