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Gold Plunges 8.5% from Peak as Strong Dollar, Rising US Yields Weigh on Bullion
M
Moneycontrol•24-09-2026, 17:51
Gold Plunges 8.5% from Peak as Strong Dollar, Rising US Yields Weigh on Bullion
- •Gold has fallen 8.52 percent from its monthly peak of $4,658 per ounce on August 25, reaching an intraday low of $4,245.60 on September 24.
- •The decline is attributed to profit-taking amid escalating US-Iran tensions, rising US bond yields, and the Dollar Index nearing 101.
- •The dollar index hit its highest level in almost two months, and the US 10-year yield reached its highest since July 2007, reinforcing expectations for further Fed rate hikes.
- •Markets are now pricing in a 70 percent probability of another Fed rate hike in October, up from 55 percent just a day earlier.
- •Experts suggest that continued strong US data could push gold towards $4,200, while signs of a cooling labor market or fresh Gulf escalation could attract buyers.
Key Questions Answered
Gold prices slipped 8.52 percent from their monthly peak of $4,658 to fall below $4,250 per ounce due to profit-taking amid escalating US-Iran tensions, a strong dollar near the 101 mark, and surging US bond yields.
Markets are pricing in a 70 percent probability of another Federal Reserve rate hike in October, up sharply from 55 percent the previous day, driven by stronger-than-expected private-sector data.
Domestic spot gold was trading just above Rs 1,50,000 per 10 grams on the MCX, while gold futures for October delivery fell 0.47 percent to Rs 1,50,590 per 10 grams from the previous close.
