29 September,2026 01:45 PM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The prices of gold and silver declined in the domestic futures trade on Tuesday as the higher US bond yields and elevated crude oil prices amid US-Iran conflict flared inflation concerns, weighing on the bullion market.
On the Multi Commodity Exchange (MCX), yellow metal contracts for December delivery traded lower by Rs 137, or 0.09 per cent, at Rs 1,48,760 per 10 grams. For the October delivery, gold futures were trading at 1,46,640 down by Rs 164.00 or 0.11 per cent.
"Gold has fallen sharply, dropping about 4 per cent in a single session to around USD 4,070 an ounce, its lowest since early August. In the domestic market it is trading near Rs 1.45 lakh per 10 grams, roughly 20 per cent below its January peak of about Rs 1.81 lakh. The reason is not any weakness in demand for gold - it is interest rates," Anindya Banerjee Head of Commodity and Currency Research, Kotak Securities said.
"Oil prices above USD 100 a barrel have pushed up inflation fears, sending US bond yields to their highest since 2007, and markets now expect the US Federal Reserve to raise rates again in October. When interest rates rise this sharply, an asset like gold that pays no interest comes under pressure, and a stronger dollar adds to that," Banerjee added.
Globally, West Texas Intermediate crude was trading at USD 94.26 per barrel, up 1.79 per cent. Brent crude was higher by 1.99 per cent at USD 107.37 per barrel in New York, according to news agency PTI.
Silver futures for December delivery declined 0.72 per cent or Rs 1,641 to Rs 2,25,801 per kg.
Globally, gold futures rose by 0.23 per cent to USD 4,125.32 per ounce in New York, according to PTI.
"Gold price has resumed on a flat note today, trailing around the lowest level of past seven weeks on the concerns over interest rates hike speculations ahead of US economic data in this week. Comex Gold spot has recovered from the support low of USD 4110 in past sessions and trading around USD 4140 an ounce," Aamir Makda, Commodity & Currency Analyst, Technical Research, Choice Broking said.
"A firm US Dollar and rise in bond yields will continue to pressure gold prices, with higher oil prices and Middle East tensions renewing inflations concerns. Key support levels would be at 148,380-147,950 respectively. On the other side, resistance would be at 149,500," he added.
According to Banerjee, the decline in gold prices is a good opportunity for household investors to purchase the yellow metal at the onset of the festive season.
"The important point for buyers is that this is a correction driven by the rate cycle, not a change in the long-term story. Central banks around the world continue to buy gold as they reduce their dependence on the dollar, and that structural demand has not gone anywhere. Technically, gold is now sitting at a major support - around USD 4,070 on spot and Rs 1.45 lakh in the domestic market," he said.
"As long as these levels hold, a rebound towards USD 4,200-4,250 is possible. For long-term investors, and for households looking ahead to the festive season, this decline is an opportunity to buy in parts rather than all at once - because if these supports give way, prices could slip further towards USD 3,950, or around Rs 1.40 lakh domestically, before finding a floor," he added.
According to the India Bullion and Jewellers Association, the indicative retail selling rate for gold on Tuesday morning was as follows:
Fine Gold (999):Rs 14,740 per gram
22 karat gold: Rs 14386 per gram
20 karat gold: Rs 13119 per gram
18 karat gold: Rs 11939 per gram
14 karat gold: Rs 9507 per gram
(With inputs from PTI)
