Rising oil prices, elevated US bond yields and a stronger dollar weigh on bullion; MCX gold trades near ₹1.50 lakh

Gold and silver prices came under pressure on Wednesday as rising crude oil prices revived inflation concerns and increased expectations of tighter monetary policy. Elevated US Treasury yields and a stronger dollar further reduced the appeal of non-yielding precious metals.

In the international market, Comex gold futures were trading near $4,165 per ounce, while silver was around $60 per ounce. In India, MCX gold futures were trading close to ₹1,49,500 per 10 grams, while silver futures were near ₹2,25,900 per kg.

Gold prices decline

The benchmark December gold contract on MCX opened ₹524 lower at ₹1,49,596 per 10 grams, compared with the previous close of ₹1,50,120. During the session, the contract slipped further and was trading around ₹1,49,505.

Internationally, Comex gold opened at $4,195 per ounce before declining to around $4,165.60. The metal remains significantly below its earlier 2026 peak of $5,586.20.

The stronger dollar and elevated US Treasury yields have increased the opportunity cost of holding gold. Reuters reported that gold prices were also pressured by caution ahead of the US Federal Reserve's September meeting minutes, which could provide clues about the future interest-rate path. Reuters

Silver also remains under pressure

Silver futures followed gold lower. The December MCX contract opened at ₹2,26,008 per kg, down ₹1,234 from the previous close of ₹2,27,242. It later traded around ₹2,25,901.

On Comex, silver opened at $61.78 per ounce and slipped to around $60. The metal had previously touched a 2026 high of $121.79 per ounce.

Crude oil and interest rates remain key drivers

Brent crude was trading above the $100-per-barrel mark as supply concerns and geopolitical tensions continued to influence energy markets. Higher oil prices can intensify inflationary pressure and make central banks more cautious about cutting interest rates. 

The US 10-year Treasury yield was around 5.3%, adding pressure on precious metals. In India, the Reserve Bank also raised its policy rate by 25 basis points to 5.5%, making the domestic interest-rate environment an additional factor for investors to monitor.

Key levels to watch

For MCX gold, ₹1,49,025 is an important support level. A sustained break below it could push prices towards ₹1,47,925. On the upside, resistance is placed near ₹1,50,900, above which gold could move towards ₹1,51,675.

For silver, support is seen at ₹2,25,055, followed by ₹2,22,865. Resistance stands at ₹2,28,755, with a sustained breakout potentially opening the way towards ₹2,30,265.

Market Outlook

The near-term direction of gold and silver is likely to remain closely linked to crude oil, the US dollar, Treasury yields and expectations surrounding interest rates. A further rise in oil prices could keep inflation concerns elevated and limit bullion gains, while any decline in yields or the dollar could provide relief to precious metals.

For Indian investors, movements in the rupee will also remain important. The immediate focus is likely to remain on the Fed meeting minutes, global bond yields, crude prices and geopolitical developments. Reuters