Stories
Gold Prices Drop Sharply: Know The Real Reason Behind The Decline
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CNBC Awaaz•05-10-2026, 15:00
Gold Prices Drop Sharply: Know The Real Reason Behind The Decline
- •Gold prices on the MCX dropped by 1020 rupees to reach 1.49 lakh rupees per 10 grams on Monday.
- •Last week, gold fell by 2887 rupees or about 2 percent, closing at 1.5 lakh rupees per 10 grams.
- •In contrast, silver performed positively with December delivery rising by 1223 rupees to 2.27 lakh rupees per kg.
- •A strong US dollar index and high bond yields are considered the major reasons putting pressure on gold prices.
- •Despite high prices in India, physical gold demand remains intact as the festive and wedding season approaches.
Key Questions Answered
On October 5, MCX gold prices dropped by ₹1,020 to reach ₹1.49 lakh per 10 grams due to pressure from a strong US dollar and high bond yields, which are near an 18-month high. According to analysts, gold currently has support at ₹1.45 lakh and resistance at ₹1.51 lakh.
While gold prices experienced a decline, silver moved in the opposite direction. Silver for December delivery on the MCX rose by ₹1,223, or 0.54%, to reach ₹2.27 lakh per kg, while international silver climbed 1.58% to $61.31 per ounce.
The Federal Reserve's upcoming October policy meeting is expected to serve as the next major trigger for the market, as investors weigh weak US economic data against a strong dollar and high Treasury yields.
