COMEX gold slid 0.90% to $4,167.50 an ounce, while silver fell 0.90% to $61.165 an ounce in early trade on Tuesday, a retreat from Monday’s 4% plunge to $4,111 an ounce. According to Reuters, the gold contract hovered between a high of $4,168.60 and a low of $4,145.20, mirroring a broader pullback across the precious‑metal corridor.
The downturn follows a 10‑year U.S. Treasury yield that has cracked above 5% for the first time since 2007, currently trading at 5.02%. That rise in yields tightens the opportunity cost of holding non‑yielding assets like gold, squeezing demand from investors seeking yield‑bearing alternatives. The 5% line is a critical psychological barrier that has been breached multiple times this year.
The U.S. Composite Purchasing Managers Index (PMI) for September rose to 58.4 from 56 in August, the strongest reading since July 2021, signalling robust manufacturing activity. Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Ltd., told reporters that the surge in real‑economy data has amplified expectations of further Federal Reserve tightening, adding to the sell‑off pressure on bullion.
Oil markets have added another layer of complexity. Brent crude is trading around $105.91 a barrel and West Texas Intermediate at $93.32, buoyed by fears of supply disruptions amid the U.S.–Iran standoff. Rising crude prices feed inflation concerns, which in turn support higher yields and keep the gold price tethered to the dollar.
Looking ahead, traders will focus on the core PCE inflation figure, the final GDP release, and the March non‑farm payrolls. Any sign of a pause or a slowdown in Fed policy, or progress in U.S.–Iran talks, could lift the gold market. Analysts are monitoring a resistance zone at $4,260 and a support line at $4,150, with central‑bank intervention seen as a potential cushion for the price.
In the Indian market, the global pullback translates into a modest decline in domestic gold prices, tempered by the rupee‑dollar exchange rate and import‑related costs. Investors eye the next session for clearer signals on U.S. monetary policy and geopolitical developments before committing to a new round of bullion purchases.