Gold and silver prices fell sharply across global markets on Monday, Sept. 28, with the losses continuing into Tuesday as investors reassessed the outlook for U.S. Gold remained near a seven-week low despite stabilizing during the session.
The retreat also spread into exchange-traded products and India’s commodity market. Silver ETFs fell as much as 4% on Monday, while gold ETFs lost more than 2%. September silver futures on the Multi Commodity Exchange declined ₹6,661 to ₹228,035 per kilogram, and October gold futures fell ₹3,214 to ₹147,667 per 10 grams.
Treasury yields and a stronger dollar formed the immediate pressure points. Crude moved toward $110 a barrel as concerns about disruptions around the Strait of Hormuz persisted after U.S. -Iran talks failed to produce a breakthrough. More expensive energy raised inflation concerns, increasing expectations that the Federal Reserve could keep rates high or raise them further. Because gold does not pay interest, higher bond yields increase the relative appeal of interest-bearing assets.
Silver faced an additional vulnerability because of its industrial role, making expectations for economic growth and manufacturing demand important alongside monetary policy. The World Bank said gold prices in the second quarter were about 15% below their February peak and silver prices about 25% below their January record, while the London Bullion Market Association recorded silver more than 50% below its January high by late June.
Markets were watching U.S. A separate quarterly outlook put gold’s near-term support around $3,900 and silver’s around $50 to $53 if restrictive monetary conditions persist, while noting that central-bank buying and gold-backed fund holdings remained sources of support. The World Bank also said the outlook remained highly uncertain because precious metals are sensitive to interest rates, the dollar, geopolitical risk and industrial demand.