Gold Drops 115 Rupees on US Rate Hike Fears
Benchmark October gold futures opened 115 rupees lower as rising US bond yields pressured precious metals.
The benchmark October gold contract opened at 1,51,115 rupees per 10 gram. This represents a decline of 115 rupees from the previous close of 1,51,230 rupees. Traders responded to concerns over potential US interest rate increases. Bond yields rose, creating immediate pressure on metal prices. The market sentiment turned cautious in early Tuesday trade.
Silver futures also opened lower on the exchange. The benchmark December contract began trading at 2,32,229 rupees per kilogram. This was a drop of 461 rupees from the prior closing price of 2,32,690 rupees. Both metals faced headwinds from the international market. Global investors reduced exposure to non-yielding assets.
Comex prices near five-week lows
International gold prices traded near a five-week low. On Comex, the metal opened at 4,340.30 dollars per ounce. The previous close stood at 4,351.90 dollars. At the time of writing, gold traded at 4,349.40 dollars. This marked a decrease of 2.50 dollars from the prior session. The asset had reached a yearly high of 5,586.20 dollars earlier in the year.
Comex silver futures opened at 63.76 dollars per ounce. The previous closing price was 64.13 dollars. The metal traded at 64.01 dollars during the session. This represented a drop of 0.12 dollars. Silver had previously touched a yearly peak of 121.79 dollars per ounce. The current price action reflects broader macroeconomic caution.
MCX session data shows volatility
Gold futures touched a session high of 1,51,553 rupees. The low was recorded at the opening price of 1,51,115 rupees. The contract traded at 1,51,181 rupees later in the day. This level was 49 rupees below the opening value. The year-to-date high for gold futures remains at 1,80,779 rupees. Investors monitor these levels for further directional cues.
Silver futures reached a high of 2,32,546 rupees per kilogram. The session low was 2,31,679 rupees. The price stood at 2,32,200 rupees at the time of writing. This was 490 rupees lower than the opening price. The yearly high for silver futures is recorded at 4,20,048 rupees per kilogram. GN auto markets/commodities: gold prices data confirms the downward trend in domestic trading.
