On Monday, bullion prices slipped 0.5% in New Delhi, with gold trading at ₹5,200 per 10‑gram and silver at ₹320 per 10‑gram, as a sharp rise in oil pushed the market into caution. Crude oil climbed 8% to $94.50 a barrel after OPEC+ announced a 2‑million‑barrel cut for the next quarter, reigniting fears that higher energy costs will feed inflation.
Bond yields edged up 7 basis points to 4.3%, while the dollar index gained 0.8%, squeezing the precious metals that have been under pressure from a stronger currency and elevated yields. Analysts say the market is now waiting for the Fed’s October 27–28 policy session, where a rate hike could anchor the decline or a pause might give bullion a breathing space.
“Sri‑Rao, head of commodities research at ICICI, warned, ‘The Fed’s stance will be the fulcrum for bullion this week,’” he said after a briefing in Mumbai. The statement echoes a broader view that the Reserve’s decision will dictate whether gold and silver can reverse their slide.
An old goldsmith in Old Delhi, Ramesh Singh, told us he had seen the price dip and is holding off on buying until the Fed’s verdict. His hesitation mirrors that of many small traders who fear a continued fall could erode their margins.
The Federal Reserve’s policy announcement on October 27 will therefore set the tone for the rest of the year, determining whether bullion stabilises or continues its downward trajectory.