Gold and silver prices in India will remain in focus on Tuesday, October 20, as the country celebrates Dussehra. The Multi Commodity Exchange (MCX) is closed for the morning session on account of the festive holiday, with trading in gold, silver and other commodities scheduled to resume at 5 p.m.
On Monday, MCX gold rate for December futures contracts settled Rs 618, or 0.42%, lower at Rs 1,47,300 per 10 grams. MCX silver futures for December delivery ended largely unchanged at Rs 2,09,825 per kilogram.
According to bullion.co, the price of 24-karat gold in Mumbai stood at Rs 1,47,340 per 10 grams, while 22-karat gold was priced at Rs 1,35,062 per 10 grams.
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Gold prices in India have risen more than 25% since Dussehra last year. Silver has outperformed the yellow metal over the same period, delivering returns of around 45%.
Gold, Silver Prices In The International Market
In the international market, gold prices remained under pressure as elevated crude oil prices fuelled inflation concerns and raised expectations of potential interest rate hikes by the US Federal Reserve.
Spot gold rose 0.1% to $4,144.15 per ounce, while spot silver gained 0.6% to $57.44 per ounce.
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Elevated US Treasury yields also weighed on gold prices. A rebound in US technology stocks reduced safe-haven demand for government bonds, pushing Treasury yields higher and adding to the pressure on the non-yielding precious metal.
What Is Driving Gold Prices?
Investors are closely tracking the Federal Reserve's next policy move as it seeks to keep inflation under control.
Gold prices have largely held above $4,100 per ounce in October, consolidating after declining more than 6% in September, despite a stronger US dollar and elevated bond yields.
However, gold remains down around a fifth from its levels before the US-Iran conflict erupted in late February. Markets continue to price in a high probability of another rate increase by the end of the year, with traders assigning a roughly 90% chance to such a move.
Higher interest rates typically weigh on gold, as the precious metal does not offer interest income and becomes relatively less attractive compared with yield-bearing assets.
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