Gold and silver slide in India as surging yields and a stronger dollar hit emerging markets

In India’s commodity markets, both gold and silver traded lower on Tuesday, September 29, reflecting global pressures from rising interest rates and a stronger US dollar. On the Multi Commodity Exchange (MCX) in Mumbai, benchmark gold futures hovered around ₹148,800 per 10 grams, while silver futures slipped toward ₹225,300 per kilogram. As US and global bond yields climb, dollar‑denominated precious metals become more expensive in local‑currency terms, damping investor appetite in emerging markets.

While gold is often held for the long term as an inflation hedge and store of value, its short‑term performance is heavily influenced by FX moves and interest‑rate expectations. With the Federal Reserve still seen as leaning hawkish and global yields pressing higher, non‑yielding assets such as gold and silver face a relative disadvantage compared with interest‑bearing instruments.

India is one of the world’s largest consumers of physical gold, with demand typically spiking during the wedding and festive seasons. The key question now is whether that seasonal jewellery demand can offset the headwinds from higher rates and currency volatility. For local investors, it is increasingly important to factor in both exchange‑rate risk and global rate trends when assessing domestic precious‑metal prices.