Gold and silver prices remained in focus on Tuesday, September 22, after precious metals witnessed a sharp correction in the previous session. Gold prices on the Multi Commodity Exchange (MCX) had fallen by nearly Rs 1,000 per 10 grams on Monday, while silver declined by around Rs 1,800 per kg.

The fall came amid rising US Treasury yields and growing expectations of further interest-rate hikes by the US Federal Reserve. Higher yields tend to weigh on non-yielding assets such as gold and silver.

Gold rate today, September 22

According to market data, MCX gold futures were trading around Rs 1,53,237 per 10 grams on Tuesday, up marginally from the previous session at the time of reporting. Silver futures were around Rs 2,39,743 per kg.

Retail gold prices also remained elevated. Bussiness data showed the standard 22-carat gold rate at around Rs 1,40,090 per 10 grams and 24-carat gold at Rs 1,52,940 per 10 grams on September 22.

In Mumbai, 24-carat gold was quoted at around Rs 1,53,353 per 10 grams, while 22-carat gold stood at approximately Rs 1,40,472 per 10 grams, according to Livemint’s city-wise data.

Silver rate today, September 22

Silver prices also remained volatile after Monday’s sharp decline. On the MCX, December silver futures were trading around Rs 2.40 lakh per kg on Tuesday.

Bussiness listed the silver rate at around Rs 2,34,000 per kg, or Rs 234 per gram, on September 22. Retail rates can vary across cities and jewellers depending on local taxes, making charges and other costs.

Why did gold and silver prices fall?

The correction in precious metals was linked largely to rising US Treasury yields and changing expectations around US monetary policy.

Gold prices on Monday slipped below Rs 1,53,400 per 10 grams on the MCX. October gold futures were trading at Rs 1,53,393 per 10 grams, down Rs 988, or 0.64 per cent, from the previous close.

Silver futures for December delivery were at Rs 2,39,789 per kg, down Rs 1,814, or 0.75 per cent, during Monday’s session.

Rising Treasury yields can reduce the appeal of gold because the precious metal does not provide interest income. The dollar and expectations around future Federal Reserve policy are also important factors influencing bullion prices.

Gold outlook

Analysts expect gold to remain volatile as investors track US monetary policy, Treasury yields, the dollar and geopolitical developments.

According to an analyst cited by Bussiness, gold could remain range-bound but volatile, with MCX gold seen in the Rs 1,51,000-Rs 1,56,000 range.

With international and domestic factors continuing to influence bullion markets, investors and jewellery buyers are likely to closely track daily movements in gold and silver prices.