Gold and silver prices in India are in focus on Tuesday, as the country celebrates Dussehra. The Multi Commodity Exchange (MCX) remains closed during the morning session due to the festive holiday, with trading in gold, silver and other commodities scheduled to resume at 5 p.m.
In the previous session on Monday, MCX gold futures for December delivery declined by Rs 618, or 0.42 per cent, to settle at Rs 1,47,300 per 10 grams. Meanwhile, silver futures for December delivery remained largely unchanged, closing 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 stood at Rs 1,35,062 per 10 grams.
Despite recent fluctuations, precious metals have delivered strong returns over the past year. Gold prices in India have climbed more than 25 per cent since Dussehra last year, while silver has outperformed gold, generating returns of approximately 45 per cent over the same period. International gold prices remained under pressure as elevated crude oil prices intensified inflation concerns and strengthened expectations that the US Federal Reserve could raise interest rates further.
Spot gold edged up 0.1 per cent to $4,144.15 per ounce, while spot silver advanced 0.6 per cent to $57.44 per ounce. Higher US Treasury yields also weighed on gold, which does not generate interest income. A recovery in US technology stocks reduced demand for government bonds as safe-haven assets, pushing Treasury yields higher and making non-yielding precious metals relatively less attractive to investors.
Investors are closely monitoring the Federal Reserve's monetary policy outlook as policymakers attempt to contain inflation. Expectations of higher interest rates have emerged as a key factor influencing the direction of gold prices in international markets.
Gold has largely remained above $4,100 per ounce during October, recovering some stability after falling more than 6 per cent in September. This consolidation has continued despite a stronger US dollar and elevated bond yields. However, the precious metal remains around 20 per cent below its levels before the US-Iran conflict began in late February.
Gold above Rs 1,47,000, silver near Rs 2.10 lakh on Dussehra
