MUMBAI — Gold prices in India remained above Rs 1.47 lakh per 10 grams Tuesday, while silver traded near Rs 2.10 lakh per kilogram as the country celebrated Dussehra amid continued volatility in global precious metals markets.
The Multi Commodity Exchange (MCX) was closed for its morning trading session because of the holiday, with trading in gold, silver and other commodities scheduled to resume at 5 p.m.
In Monday’s session, MCX gold futures for December delivery fell Rs 618, or 0.42%, to close at Rs 1,47,300 per 10 grams. Silver futures for December delivery remained relatively unchanged, settling at Rs 2,09,825 per kilogram.
According to bullion.co, 24-karat gold in Mumbai was priced at Rs 1,47,340 per 10 grams, while 22-karat gold was quoted at Rs 1,35,062 per 10 grams.
Despite recent market fluctuations, both precious metals have generated substantial returns over the past year.
Gold prices in India have increased more than 25% since Dussehra last year, while silver has delivered even stronger gains of approximately 45% during the same period.
In international markets, gold continued to face pressure from rising crude oil prices, persistent inflation concerns and expectations that the U.S. Federal Reserve could raise interest rates further.
Spot gold edged up 0.1% to $4,144.15 per ounce, while spot silver gained 0.6% to $57.44 per ounce.
Higher U.S. Treasury yields have also weighed on gold prices. Because gold does not generate interest income, rising bond yields can make the metal less attractive compared with interest-bearing investments.
A rebound in U.S. technology stocks contributed to higher Treasury yields as investors reduced their demand for government bonds as safe-haven investments.
Market participants are closely watching the Federal Reserve’s monetary policy outlook as officials assess inflationary pressures and the potential need for additional interest rate increases.
Gold has largely remained above $4,100 per ounce during October, showing signs of stabilization after declining more than 6% in September.
The recovery has occurred despite a stronger U.S. dollar and elevated bond yields, both of which typically put downward pressure on precious metals.
However, international gold prices remain approximately 20% below levels recorded before the U.S.-Iran conflict began in late February.
With inflation concerns, geopolitical uncertainty and expectations surrounding U.S. interest rates continuing to influence investor sentiment, precious metals markets remain sensitive to changes in global economic conditions. (Source: IANS)
