Gold and silver fall to three-month lows amid oil surge and dollar strength

Gold and silver prices fell for a third consecutive session, with domestic gold slumping to Rs 1,46,100 per 10 grams and silver declining to Rs 2,02,000 per kilogram, according to the All India Sarafa Association. The declines were driven by crude oil prices rising above $115 per barrel, a strengthening US dollar, and elevated Treasury yields. Globally, spot gold touched a fresh cycle low of $3,986 per ounce—its lowest level since early June—before recovering to around $4,024 per ounce, while silver dropped 1.41 percent to $53.83 per ounce.

Multiple factors converged to pressure precious metals. Rising energy prices fueled persistent inflation fears and reinforced expectations that the Federal Reserve would maintain or increase restrictive monetary policy. A technology-led equity market selloff on Thursday triggered broader liquidations, as investors sold precious metals to cover losses in tech stocks. The stronger dollar and higher bond yields reduced the appeal of non-yielding assets like gold and silver, while geopolitical tensions in West Asia contributed to elevated oil prices.

Silver has experienced steeper losses than gold, declining approximately 13 to 14 percent over the past month. Silver has lost Rs 30,000 per kilogram since September 30, reflecting pressure on both precious metals and industrial commodities. Domestic gold prices reached their lowest level since early July, tracking bearish global trends. Analysts noted that the combination of a firm dollar, elevated yields, and rising oil prices created an unfavorable near-term environment for bullion. Some market participants suggested that while short-term momentum appeared weak, $4,000 per ounce could serve as a support level for gold, with potential recovery depending on signals from central banks and US economic data.