Domestic bullion prices retreat as higher US yields and expectations of tighter monetary policy weigh on precious metals
GTNS , NEW DELHI | SEPTEMBER 29, 2026 , India’s bullion market witnessed a sharp correction on September 29, with both gold and silver coming under heavy selling pressure amid a combination of global currency, energy and interest-rate concerns.
According to figures attributed to the India Bullion and Jewellers Association (IBJA), 24-carat gold declined by around ₹4,133 per 10 grams to ₹1,47,980, while silver fell by ₹9,297 to around ₹2.23 lakh per kilogram.
The latest fall has also reduced the gains accumulated earlier in the year. Compared with the levels seen towards the end of August, gold has now fallen by roughly ₹8,000-₹9,000 from around ₹1.56 lakh per 10 grams, while silver has declined by approximately ₹14,000-₹15,000 per kilogram.
Why are bullion prices falling?
The correction is closely linked to developments in international markets. The US dollar has strengthened, while higher Treasury yields have increased the opportunity cost of holding non-yielding assets such as gold.
At the same time, crude oil prices have moved sharply higher, with Brent crude trading above $108 a barrel in recent market activity. Higher energy prices have revived inflation concerns and contributed to expectations that US monetary policy could remain tight for longer.
Global bullion markets have consequently faced selling pressure. Reuters reported that spot gold had recently touched a seven-week low before recovering modestly, while investors continued to assess the possibility of additional US interest-rate increases.
Interest-rate expectations add to pressure
Higher US yields and expectations of further Federal Reserve tightening have become an important factor behind the recent weakness in precious metals.
When interest rates and bond yields rise, investors may find dollar-denominated fixed-income assets relatively more attractive compared with assets such as gold and silver, which do not generate interest income.
Market reports on September 29 were therefore focusing on the possibility of future Fed rate increases, rather than a fresh rate hike having already taken place that day.
Silver sees deeper correction
Silver has experienced a particularly sharp domestic correction, with the latest decline taking the metal closer to the ₹2.2 lakh-per-kg zone.
The fall reflects the broader weakness across precious metals, while rising yields, a stronger dollar and higher crude prices have added to the selling environment.
For Indian consumers and investors, the latest movement underlines how quickly domestic bullion prices can respond to international market changes. Currency movements, crude oil, US monetary policy expectations and global investor sentiment are likely to remain key factors influencing gold and silver prices in the near term.