Silver prices also plummet as gold prices in India falls to near 7-month lows. In Indian markets, gold prices plummeted to levels not seen in nearly seven months, as selling pressure spread across all precious metals worldwide. On the MCX, silver futures dropped 0.7% to values below 55,000 per kg, while gold futures dropped 0.5% to 49,081 per 10 grammes.
Sport gold was down 0.3% to $1,624.12 per ounce on international markets, close to two-year lows. The yellow metal was under pressure as a result of a strong dollar and rising US Treasury yields, both of which reached multi-year highs. At last check, spot silver was down 1.4% at $18.17 per ounce after reaching a three-week low.
Brief about silver prices also plummet as gold prices in India falls to near 7-month lows:
For customers holding foreign currencies, the price of greenback-priced bullion increased as the dollar index reached a new two-decade high. Benchmark For the first time since 2010, 10-year Treasury yields in the United States reached 4%.
The dollar has reached multi-year highs as a result of the Fed’s aggressive rate hikes, which have diminished the attraction of gold as a hedge against inflation and economic uncertainty.
Top Fed officials, including Charles Evans of the Chicago Fed, James Bullard of the St. Louis Fed, and Neel Kashkari of the Minneapolis Federal Reserve Bank, have reaffirmed the commitment of the central bank to concentrate on addressing the rising inflation.
According to a note from IFA Global, aggressive central bank tightening is anticipated to impact global demand as gold prices continue to decline due to rising US real yields and Brent crude prices have also declined significantly.
Investor attitude remained negative despite the significant drop in gold prices. The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, saw a decline in holdings on Tuesday, going from 943.47 tonnes on Monday to 940.86 tonnes.
According to domestic brokerage Geojit, there may be additional selling pressure if gold crosses the crucial $1600 barrier, and silver prices need to break over $20 to start rising.
Global markets fell to two-year lows today in the current risk-off mood as rising borrowing prices and a worsening energy crisis heightened concerns that the globe could enter a recession, sending investors scurrying for the safe-haven dollar. In the past week, central banks all over the world have raised interest rates and pledged to take every necessary action to combat soaring inflation.