Gold and silver prices declined in domestic futures and the retail market on Thursday, September 24, amid a sharp decline in the global stock market due to the uptick in US bond yields and elevated crude rates. MCX Gold, October 5 expiry, declined Rs 1,124 to a low of Rs 1,50,175 per 10 grams as compared to the last close of Rs 1,51,299. MCX Silver, December 4 expiry, fell over Rs 2,918 to a low of Rs 2,32,600 per kilogram from the last close of Rs 2,35,895.  

At closing, MCX Gold was at Rs 1,50,550, down Rs 749 or 0.5 per cent. MCX Silver was quoted at Rs 232977, down Rs 2918 or 1.24 per cent.      

"Gold traded weak by around Rs 1,000 at Rs 1,50,350, as rising bond yields and the Dollar Index moving above 101 increased pressure on bullion," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

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What Will Drive Bullion Market Further

According to the analyst, the bullion market is increasingly pricing in the possibility of another rate hike by the central bank in October, with higher rates and yields raising the opportunity cost of holding gold. 

"Going ahead, the rate outlook, dollar movement and bond yields will remain key triggers. Gold range can be seen between Rs 1,48,000–Rs 1,52,500," Trivedi noted. 

What is Dragging Bullion Market: 3 Factors 

1- An uptick in US bond yields and elevated crude rates triggered a sharp decline in global stock markets, adding pressure to bullion.

2- The Dollar Index moving above 101 increased selling pressure on gold and silver.

3- The market is increasingly pricing in the possibility of another rate hike by the central bank in October, raising the opportunity cost of holding gold.

24k, 22k Gold Rates Decline 

Mirroring the decline in the futures market, gold rates for all purity levels fell in the domestic retail market as well. According to IBJA, retail gold rates closed on September 24 as follows: 

24 karat (999) - Rs 1,50,785 from Rs 1,51,407 on September 23

22 karat (916) - Rs 1,38,119 from Rs 1,39,357 on September 23

Note: The IBJA rates are excluded from GST charges. 

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Stock Market Today

The Indian stock market tanked over 1.5 per cent on Thursday amid broad-based selling. BSE Sensex, the 30-share index, nosedived 1,247.71 points or 1.67 per cent to settle at 73,580.54. Nifty50, the 50-share index of NSE, ended the session at 23,063.10, down 383.70 points or 1.64 per cent.