Gold futures on the Multi Commodity Exchange closed at ₹1.49 lakh per 10 grams, down 0.01%, while silver fell 0.05% to ₹2.22 lakh per kilogram— a muted dip amid a steady dollar and rising bond yields.
The commodity’s softness comes as investors weigh a firmer U.S. dollar against expectations of an upcoming Fed rate hike. Crude‑oil prices, which have been volatile, also feed into inflation concerns that could tighten bullion demand.
Gaurav Garg, Head of Research at Lemonn, noted that “gold and silver are gaining in international markets, but a firm dollar and Fed uncertainty could cap further gains.” He added that traders are closely watching the U.S. CPI and PPI releases for fresh inflation cues.
N S Ramaswamy, Head of Commodity at Ventura, highlighted that after weaker payroll data, the market’s expectation of an October rate hike has receded. He warned that higher rates later in the year and into early 2027 could continue to weigh on prices.
Looking ahead, Ramaswamy projects gold to trade between ₹1.50 lakh and ₹1.65 lakh per 10 grams in the run‑up to Diwali, with a potential consolidation once festive demand peaks. Investors are keeping an eye on the U.S. inflation numbers and the dollar’s trajectory for signals on whether this range will hold.