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Gold and silver prices fall due to rising oil, stronger US dollar, and higher bond yields. By Anshul September 28, 2026, 7:25:58 AM IST (Updated) 4 Min Read Gold and silver prices came under pressure on Monday (September 28) as rising oil prices, a stronger US dollar and higher bond yields weighed on demand for non-interest-bearing assets. On the international market, COMEX gold was down 1.57% at $4,253.40 an ounce, while COMEX silver declined 2.76% to $63.01 an ounce, according to market data.
The decline comes after both precious metals recorded losses last week. COMEX gold futures for December delivery fell $103.70, or 2.34%, last week to settle at $4,321.20 an ounce, while silver declined $2.35, or 3.5%, to $64.80 an ounce. On the domestic market, MCX gold futures for October delivery fell nearly 2.3% last week to settle at around ₹1.5 lakh per 10 grams.
Silver futures declined 3% to ₹2.34 lakh per kg. Why are gold and silver under pressure? One of the key factors is the shift in expectations around US interest rates.
Markets are factoring in the possibility of another Federal Reserve rate hike in October. Higher interest rates and bond yields tend to make non-interest-bearing assets such as gold and silver relatively less attractive. US Treasury yields have also moved higher, with the 30-year yield near levels last seen in 2004.
The rise in long-term yields has added pressure on bullion prices. The US dollar is another factor to watch. The dollar index has climbed to around 101.39, its highest level in two months.
A stronger dollar can weigh on demand for dollar-denominated commodities, including gold. "Gold remained highly volatile last week, trading within the ₹1.5-1.54 lakh per 10 grams range and ending lower by more than 2% as profit booking from higher levels continued as markets priced in the possibility of another Fed rate hike in October," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. He added that a sustained rise in the dollar index above 101 could add to the pressure on gold.
What does the geopolitical situation mean for bullion? Geopolitical developments remain an important variable, but their impact on gold is currently being weighed against the pressure coming from higher yields and the dollar. The US-Iran standoff and developments around the Strait of Hormuz have pushed crude oil prices higher.
Brent crude rose 1.6% to $106 a barrel on Monday (September 28), while US crude futures gained 1.1% to $93.47 a barrel. Higher crude prices can add to inflation concerns. That, in turn, could influence expectations around the path of interest rates and keep bond yields elevated, creating an additional headwind for bullion.
At the same time, geopolitical uncertainty can support safe-haven demand for gold. This means bullion prices could remain sensitive to developments in both the geopolitical and interest-rate space. What should gold and silver investors watch this week?
The US economic data calendar is packed, with consumer confidence, GDP, PCE inflation, manufacturing data and the September non-farm payrolls report due this week. Comments from Federal Reserve officials will also be closely watched. The US jobs report will be particularly important for rate expectations.
A stronger-than-expected labour market reading could reinforce expectations of tighter monetary policy, potentially putting further pressure on gold. A weaker reading could have the opposite effect by reducing expectations of further rate hikes. "The broader outlook remains cautious with volatility likely to stay elevated as the market will closely focus on the upcoming US nonfarm payrolls and unemployment data, which will be crucial in determining expectations around the Federal Reserve's October policy decision," Trivedi said.
Pranav Mer, Senior Vice President, EBG - Commodity & Currency Research, JM Financial Services, said gold futures remained under selling pressure last week, while silver also ended lower amid consolidation and correction in industrial metals. For Indian investors, movements in the rupee will also remain relevant because international bullion prices are dollar-denominated. A weaker rupee can partly offset a fall in international gold prices when translated into domestic prices, while a stronger rupee can have the opposite effect.
With US data, interest-rate expectations, the dollar, crude prices and geopolitical developments all in focus, gold and silver could remain volatile through the week. -With agencies inputs First Published: Sept 28, 2026 7:24 AM IST Note To Readers This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.
Source: cnbctv18.com
