Gold & Silver Prices Continue To Fall In India, Slips Rs. 1100 Recently, Firm US Bond Yield

Gold rates continue to fall in India this week, in line with the weak global picture. In the Comex, December gold futures fell to around US$ 1,646/oz today. In India, the 22-carat gold rate is quoted at Rs. 46,750, and the 24-carat gold rate is quoted at Rs. 51,000/10 grams. The yellow metal fell by around Rs. 1100 in the last 5 days. Silver price stood at Rs. 5730/100 grams. Additionally, in India, the Mumbai Commodity Exchange (MCX) gold in December future is quoted at Rs. 50261/10 grams, down by 1.22%, from the last trading day. The falling trend in gold and silver prices is expected to boost retail gold sales this festive season.

In September, US CPI (retail inflation) gained to 8.2% YoY, up by 0.4% from August. Investors are worried that the high inflationary pressure will keep the US Federal Reserve on the path of raising the interest rate. The Fed has been trying to control the inflation rate at 2%. Many analysts are also worried about a possible recession in the US. Hence, the hawkish stance, taken up by the US central bank will further move the US Bond Yields up. Eventually, this will pressurize gold and silver prices globally.

Meanwhile, the 2-year Treasury bond yield increased to around 2-year Treasury bond yield 4.502%, and the 10-year U.S. Treasury yield increased sharply to around 4.018%. Today, the US Dollar index increased to 113.27, gaining by 0.81%, at the time of writing.
Another reason the gold market is down today is the Michigan Consumer Sentiment rallied in October.

The University of Michigan survey mentioned, "Consumer sentiment is essentially unchanged at 1.2 index points above September, in spite of a 23% improvement in current buying conditions for durables owing to an easing in supply constraints. The sentiment is now 9.8 points above the all-time low reached in June, but this improvement remains tentative, as the expectations index declined by 3% from last month." The survey added that a preliminary estimate of its consumer sentiment survey gained up to a reading of 59.8 from September's reading of 58.6.