Indian Gold and Silver Prices Drop on Strong Dollar
Precious metals face downward pressure as US yields rise and the dollar strengthens ahead of the Federal Reserve decision.
Indian 24-carat gold prices fell 0.7 percent to 1,50,902 rupees per 10 grams. Silver prices declined to 2,28,741 rupees per kilogram in the spot market.
The decline reflects a stronger US dollar and rising Treasury yields. These factors reduce the appeal of non-yielding assets like precious metals.
Futures Contracts Show Continued Weakness
October gold futures on the MCX dropped 0.33 percent to 1,50,736 rupees. The contract traded within a range of 1,50,650 to 1,51,553 rupees.
December silver futures fell 0.64 percent to 2,31,202 rupees per kilogram. The trading range for this contract was 2,30,816 to 2,32,546 rupees.
This follows a previous session where MCX gold and silver fell as much as 2 percent. Growing expectations of tighter US monetary policy drove that earlier drop.
Global Markets and Oil Prices Impact
Spot gold slipped 0.1 percent to 4,293.29 dollars per ounce. US gold futures declined 0.4 percent to 4,332.80 dollars.
Brent crude remained above 107 dollars a barrel. High energy costs raise inflation concerns, which may force the Federal Reserve to maintain a tight policy stance.
Market Data From Indian Sources
GN auto markets/commodities: silver prices data confirms the local decline. Investors remain cautious ahead of the upcoming Federal Reserve policy decision.
