Gold Price Today: Gold prices remained under pressure in early trade on Tuesday (October 20), with the precious metal heading for a third consecutive session of losses as a stronger US dollar and higher US Treasury yields weighed on bullion demand.
As of 6:00 am, spot gold was down 0.3 per cent, or USD 10, at USD 4,130.80 per ounce. Spot silver also traded lower, slipping 0.4 per cent to USD 56.88 per ounce.
The decline extended the recent weakness in precious metals, with gold hovering slightly above the USD 4,100-per-ounce mark during early trading hours.
Why gold prices are falling today?
Bullion prices came under pressure as the US dollar strengthened, making dollar-denominated gold more expensive for holders of other currencies.
The US Dollar Index remained close to the 102 level, adding to the pressure on gold prices.
At the same time, US Treasury yields stayed elevated, with the benchmark 10-year Treasury yield hovering above 5 per cent. Higher yields increase the opportunity cost of holding non-yielding assets such as gold.
Higher bond yields typically attract investor interest towards interest-bearing assets, reducing demand for bullion.
Dollar, yield trends cap gold gains
Gold had found support on Monday when the US dollar weakened and Treasury yields retreated. However, the rebound in the greenback and persistently high bond yields reversed that trend, limiting gains in the precious metal.
Market participants continued to monitor the interest-rate outlook in the United States, with movements in the US dollar and Treasury yields remaining key drivers for bullion prices.
Spot silver also remained under pressure amid the broader weakness in precious metals.
MCX Gold, Silver Prices
On the domestic market front, gold and silver prices were not trading at the time of writing due to the Dussehra holiday.
The commodity bourse is scheduled to reopen for the evening session from 5:00 pm onwards, allowing trading in commodities such as gold, silver, crude oil and base metals.
Gold and silver futures on the Multi Commodity Exchange (MCX) had previously settled at Rs 1,47,300 per 10 grams and Rs 2,09,825 per kg, respectively.
Gold Price Outlook
Comments from US Federal Reserve officials and economic data due later in the week will be monitored for indications on the future path of monetary policy and its potential impact on gold prices.