Gold price dropped by over 1,000 this week, while silver futures slumped by 1.4%

Gold and silver prices in India remained weak as global interest rates fell. Gold futures on the MCX declined 0.2% to 51,501 per 10 gram, while silver futures fell 1.4% to 55,640 per kg.

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Gold and silver prices in India remained weak as global interest rates fell. Gold futures on the MCX declined 0.2% to 51,501 per 10 gram, while silver futures fell 1.4% to 55,640 per kg. This week, the yellow metal has dropped almost 1,000 points due to increased strength in the US currency and bond yields. Gold fell 0.3% to a three-week low of $1,753.84 per ounce in global markets, extending losses for the fifth consecutive day, driven down by a stronger currency and rising US government prices.

The dollar is once again on the rise, while bond yields have risen, as senior US Federal Reserve officials indicated the central bank needs to keep raising interest rates in order to control excessive inflation. Rising interest rates raise the opportunity cost of storing non-yielding bullion.

“The last US Fed meeting minutes contained hints of more interest rate hikes, and the US currency recovered sharply, sending gold prices to three-week lows. Prices on the important London spot market have fallen by more than 2.8% this week. Optimistic economic data from the United States sent the US dollar to a near one-month high, undermining the appeal of nonyielding commodities such as gold. In the domestic market, however, a weak rupee that has retreated from recent highs has limited considerable liquidation pressure “said Hareesh V, Geojit Financial Services’ Head of Commodities.

Among other precious metals, spot silver slid 1.5% to $19.23 per ounce. Commodity traders will be watching next week’s Jackson Hole, Wyoming, a symposium of central bankers, where finance chiefs and central bankers will talk.