Gold and silver prices drop as global markets weigh on bullion

Spot gold dropped 1.63 percent to stay just above $4,215 per ounce in the early session, and US gold futures fell 1.75 percent to $4,245.40 per ounce.

Market Rates

MCX gold futures for delivery on October 5 dropped 1.83 percent to Rs 1,48,115 per 10 grams. Silver futures for the December contract fell 2.6 percent to Rs 2,28,603 per kilogram compared to the previous close. Domestic spot gold finished the Friday session at Rs 1,51,377 per 10 grams, while silver held at Rs 2,31,793 per kilogram.

Economic Factors

Inflation pressures went up as Brent crude oil moved past $106. The Dollar Index climbed to 101.15, treasury yields stayed high, and markets now price in a 68 percent chance of an October Federal Reserve rate hike.

Expert View

Giottus CEO Vikram Subburaj said Indian bullion markets are starting the week on a mixed note with gold under pressure from global cues. Higher oil prices are adding to inflation worries and keeping US rate hike expectations in focus. Subburaj advised that investors should avoid chasing short-term moves, long-term buyers can consider staggered purchases, and traders using leverage should keep positions smaller with strict stop-losses.

Context

Precious metals like gold and silver often face downward pressure when the US dollar strengthens and interest rates rise, because investors tend to shift money toward yield-bearing assets. Higher crude oil prices also feed into inflation fears, which directly influence central bank decisions on interest rates.