Stories
Gold Silver Crash: Prices Plunge on Sept 28, Silver Down ₹6,300 – What Caused the Drop?
- •Gold and silver prices saw a significant drop on September 28.
- •On MCX, silver fell by ₹6,300 per kg and gold by ₹2,900 per 10 grams.
- •Expectations of a US interest rate hike and a strong dollar put pressure on prices.
- •Rising US Treasury yields and profit-booking also contributed to the decline.
- •Geopolitical developments and increasing crude oil prices are also impacting gold and silver.
Key Questions Answered
Gold and silver prices dropped significantly due to changed expectations regarding US interest rates, as markets factored in a potential Federal Reserve rate hike in October. Additionally, rising US Treasury yields, a two-month high in the US dollar index, and profit-booking from higher levels placed heavy pressure on both precious metals.
Following the sharp decline on the MCX on September 28, the price of gold dropped by 2,900 rupees to reach 148,156 rupees per 10 grams. Meanwhile, silver recorded a fall of 6,300 rupees per kilogram, bringing its price down to 228,788 rupees per kilogram.
Rising crude oil prices and developments surrounding Iran and the Strait of Hormuz have increased inflation concerns and boosted crude prices. While expensive oil can keep bond yields high and add pressure on bullion, geopolitical uncertainty also supports safe-haven demand for gold.
