From mint · A Ksheerasagar · · 1m 20s
Silver drops ₹56,000 from August peak as gold slides 23,000/10g
Precious metals fall as higher US interest rates and Middle East tensions drive selloff.
In brief
Precious metals fall as higher US interest rates and Middle East tensions drive selloff. Silver dropped ₹56,000 from August peak to ₹1,92,800/kg while gold fell ₹23,000/10g due to rising bond yields and Middle East conflicts. Originally reported by mint.
Silver price drop
Silver fell ₹56,000 from its August peak to ₹1,92,800 per kg, its lowest level since December 2025.
Gold price decline
Gold prices dropped ₹23,000 per 10 grams from August peak to ₹1,42,800, near a three-month low.
Middle East tensions impact
Escalating Houthi attacks on Saudi targets and possible US strikes against Iran have raised oil prices to $115 per barrel.
US inflation data
Last week’s US inflation data showed hotter-than-expected energy costs, strengthening the case for tighter Federal Reserve monetary policy.
Federal Reserve rate expectations
Market expectations for a Fed rate hike at the October 27, 28 meeting stand at 9%, with 81% probability of a December hike.
Investor concerns
Higher bond yields reduce the appeal of non-yielding assets like gold, pushing investors toward yield-bearing investments.
Precious metals outlook
Gold and silver prices face further declines as the Federal Reserve’s next move remains uncertain.
Market reaction
Investors await US PCE data on October 29 to gauge progress toward the Fed’s 2% inflation target.
The main idea
Silver dropped ₹56,000 from August peak to ₹1,92,800/kg while gold fell ₹23,000/10g due to rising bond yields and Middle East conflicts.
