09 March,2026 01:32 PM IST | Mumbai | mid-day online correspondent
Precious metals ease amid strong US dollar and rising inflation concerns. Representational Image
Gold and silver prices slipped on Monday as a stronger US dollar and rising inflation expectations reduced hopes of an early interest rate cut by the US Federal Reserve. Precious metals initially fell during the day before recovering some losses later in the session, reported the IANS.
On the Multi Commodity Exchange (MCX), gold April futures slipped 0.16 per cent to Rs 1,61,380 per 10 grams around 11:10 am during intra-day trading. Silver May futures also declined, falling 1.30 per cent to Rs 2,64,799 per kilogram.
Earlier in the day, the drop was sharper. Gold futures had fallen about 1.1 per cent while silver futures had declined around 1.4 per cent before both metals saw a strong rebound.
Gold prices in Mumbai on Monday stood at Rs 16,168 per gram for 24-karat gold , Rs 14,820 per gram for 22-karat and Rs 12,126 for 18-karat. These rates reflect the broader movement in the bullion market influenced by global factors such as the strength of the US dollar, rising Treasury yields, and shifting expectations around US Federal Reserve interest rate decisions.
One of the key factors behind the decline in gold and silver prices was the strengthening US dollar. The dollar index rose to a three-month high of 99.34, gaining 0.36 per cent during the session. A stronger dollar typically makes gold and other dollar-priced commodities more expensive for investors holding other currencies, reducing demand, the news agency reported.
At the same time, US Treasury yields also moved higher. The yield on the 10 year treasury note touched a one-month high. Rising bond yields increase the opportunity cost of holding non-yielding assets such as gold and silver, which can put pressure on their prices.
Another factor influencing the market is the sharp rise in crude oil prices. Oil surged about 27 per cent to USD 116 per barrel, marking the first time since 2022 that major benchmarks crossed the USD 100 level. The spike followed rising tensions in the Middle East and supply disruptions near the Strait of Hormuz as per IANS.
Higher oil prices have increased concerns about inflation. As a result, traders now expect the US Federal Reserve to keep interest rates unchanged at the end of its two-day policy meeting on March 18. Market expectations show that the probability of the Fed keeping rates steady in June has risen to more than 51 per cent, compared to less than 43 per cent last week.
According to analysts, gold currently has support around Rs 1,48,000 and faces resistance near Rs 1,53,000. In the international market, strong buying interest has been seen around the USD 5,000 support level in COMEX gold. A sustained breakout above the USD 5,400-USD 5,600 range could push prices to new record highs as per IANS reports.
Despite short-term volatility, the medium- to long-term outlook for silver remains positive due to global geopolitical developments.
Meanwhile, a report by SBI Research suggested that the United States could potentially reduce a large part of its budget deficit by revaluing its gold reserves. Currently, US gold reserves are valued at prices set in 1973. Updating them to current market prices could significantly increase asset values and potentially wipe out about 70 per cent of the US budget deficit, the report said as per ANI.
(With IANS and ANI Inputs)
