Gold prices fell to a nearly four-month low on Monday, with the Gold Hits 4-Month Low trend reflecting global market weakness, rising inflation concerns, and expectations of higher interest rates that pushed silver down over 3% and reduced demand for precious metals.
Global Weakness Pushes Bullion Prices Lower
Gold extended its losing streak for a ninth straight session in international markets, falling more than 3% to about $4,340 per ounce. U.S. gold futures also declined sharply, reflecting broader investor caution.
Silver mirrored the trend, dropping over 3% globally as risk sentiment weakened. Analysts said persistent uncertainty around inflation and monetary policy is prompting investors to move away from non-yielding assets such as gold and silver. “Higher interest rate expectations are reducing the appeal of bullion,” said a Mumbai-based commodities analyst. , reinforcing concerns behind the Gold Hits 4-Month Low outlook.
Domestic Rates Edge Lower Across Cities
In India, bullion prices followed global cues with modest declines in early trade. On the Multi Commodity Exchange, gold opened about 5% lower, while silver dropped around 6%.
The price of 24-carat gold slipped Rs 10 to Rs 1,45,960 per 10 grams, while 22-carat gold fell by the same margin to Rs 1,33,790 per 10 grams. Silver prices dropped more sharply, declining Rs 100 to Rs 2,44,900 per kilogram.
Across major cities, gold prices showed minor variations. Mumbai, Kolkata, Bengaluru and Hyderabad reported 24-carat gold at Rs 1,45,960 per 10 grams, while Delhi quoted slightly higher at Rs 1,46,110. Chennai continued to see elevated rates at Rs 1,48,570.
Silver prices remained largely uniform at Rs 2,44,900 per kilogram in Delhi, Mumbai and Kolkata, while Chennai quoted higher at Rs 2,49,900.
A Delhi-based bullion trader said the domestic market is closely tracking international trends. “The movement is largely imported from global markets. Local demand remains steady, but prices are reacting to external pressures,” the trader said.
Inflation, Rates And Dollar Drive Outlook
Market participants attribute the decline to a combination of macroeconomic factors. Rising crude oil prices are fueling global inflation concerns, increasing the likelihood of prolonged higher interest rates.
At the same time, a stronger U.S. dollar and rising bond yields are making gold more expensive for overseas buyers, further dampening demand.
Geopolitical tensions in the Middle East, including concerns around key oil supply routes, are adding to volatility but have not been enough to support bullion prices.
“Gold typically benefits from uncertainty, but when interest rates and the dollar rise simultaneously, it creates strong headwinds,” said another commodities expert.
Looking ahead, analysts say bullion prices will depend on several key triggers, including movements in crude oil, signals from the U.S. Federal Reserve on potential rate cuts, and trends in the dollar and bond yields. Gold Hits 4-Month Low while investors are also expected to monitor geopolitical developments closely, as any escalation could shift demand back toward safe-haven assets. For now, the broader environment remains unfavorable for gold and silver, with markets prioritizing yield-bearing investments over traditional hedges.
