{
  "type": "article",
  "title": "Gold and Silver Tumble on MCX as Crude Oil Surges Above $101 and Rate Worries Mount",
  "summary": "Precious metals hit two-month lows globally as MCX silver plunged nearly Rs 1,300 to Rs 2,25,966 per kg and MCX gold slipped below Rs 1.50 lakh amid elevated crude prices, geopolitical tensions, and monetary policy decisions.",
  "content": "Precious metals faced intense selling pressure across domestic and international exchanges on Wednesday, pulling both gold and silver below key benchmark levels. On the Multi Commodity Exchange, silver dropped by nearly Rs 1,300, or 0.6 percent, trading near Rs 2,25,966 per kilogram after touching an intraday low of Rs 2,25,651 per kilogram. This decline completely erased the previous Rs 2.28 lakh per kg milestone recorded just yesterday following a temporary pause in sovereign bond yields. Similarly, MCX gold slipped by Rs 492, or 0.33 percent, to trade around Rs 1,49,628 per 10 grams, hovering close to its intraday low of Rs 1,49,505 per 10 grams. The slide pushed domestic gold contracts beneath the Rs 1.50 lakh mark achieved in the preceding session.\n\nGlobal Bullion Slips to Two-Month Troughs\nWeakness in the international bullion market continues to dictate price action in Indian precious metals. Spot gold fell 0.50 percent during early Wednesday trading to around $4,144 per ounce before struggling near $4,145 per ounce. In tandem, spot silver dropped by approximately 1 percent to trade near $60.86 per ounce, remaining pressured around $60.9 per ounce. These levels represent two-month lows for both commodities. Rising crude oil benchmarks and supply anxieties stemming from the Middle East have reignited broader inflationary threats, wiping out recent safe-haven gains across precious metal markets.\n\nEnergy Crisis Deepens as Crude Climbs\nA primary catalyst weighing on precious metals is the renewed momentum in energy markets. Crude oil benchmarks rose by 1 percent, intensifying concerns over an escalating energy crisis. US West Texas Intermediate crude traded above $90 per barrel, while global benchmark Brent crude crossed $101 per barrel. Escalating regional hostilities in the Middle East have heightened the risk to maritime energy routes, as Iran stepped up attacks on commercial tankers passing through the Strait of Hormuz in recent days, and Saudi armed forces continued active combat with Houthi fighters. These elevated energy prices are feeding into global inflation expectations and complicating central bank projections.\n\nTreasury Yields Hover Near Multi-Decade Highs\nSovereign bond markets remain another focal point for bullion investors. United States Treasury yields continue to hover near multi-decade peaks, driven by stubborn inflation, expanding fiscal vulnerabilities, and massive debt issuances tied to artificial intelligence investments. While the benchmark 10-year US Treasury yield paused its relentless climb to trade around 5.26 percent, pulling back slightly from a 24-year high of 5.33 percent, yields remain up by 110 basis points year-to-date. This overarching upward trend keeps pressure on policymakers for continued monetary tightening. Concurrently, the US dollar index held stable around the 102 mark.\n\nBroader financial markets are pricing in an approximately 80 percent probability that the Federal Reserve will hold interest rates steady this month, influenced by slower-than-projected employment additions in September alongside downward revisions to payroll tallies for the preceding two months. Market participants are waiting for the release of the September Federal Open Market Committee meeting minutes on Wednesday. According to an assessment from Morningstar, these minutes carry significant weight as they will detail the policy reasoning behind the September decision to increase the federal funds rate by 25 basis points.\n\nRBI Monetary Policy Committee Weighs Rate Decision\nOn the domestic front, Reserve Bank of India Governor Sanjay Malhotra and the six-member Monetary Policy Committee are scheduled to announce their October 2026 monetary policy resolutions on Wednesday. The central bank confronts an intricate macroeconomic landscape characterized by elevated crude oil prices and high Treasury yields. The decision whether to implement a rate hike or preserve the status quo carries major ramifications across retail savings, borrowing costs, and domestic inflation metrics. Financial markets are widely anticipating that the RBI may mirror the US Federal Reserve by delivering a 25 basis point rate increase, effectively terminating an 11-month-long dovish monetary stance.\n\nGST Council Considers Overhauling Bullion Import Tax Framework\nRegulatory developments could also reshape Indian precious metal imports in the coming days. The GST Council is reviewing a proposal to eliminate preferential tax concessions historically granted to government-nominated trading enterprises, including MMTC and the State Trading Corporation of India. Scheduled for discussion at the GST Council meeting on October 8, the proposal seeks to align commercial banks, nominated import agencies, and bullion exchanges under a standardized tax regime. Under the existing framework, commercial banks and select nominated agencies pay 3 percent GST on bullion imports, whereas specific government trading entities have retained exemptions originally granted in 2017. Standardizing these rules would remove legacy exemptions across the precious metal supply chain.\n\nWhat this means for you\nThe decline in precious metal prices alongside looming rate hike risks will directly influence household budgets, loan rates, and precious metal investments.\n\n• For jewelry buyers: Domestic gold has dropped below Rs 1.50 lakh per 10 grams while silver slipped under Rs 2.28 lakh per kg. Consumers planning festival or wedding purchases may benefit from marginally lower entry prices.\n• Import duty and tax uniformity: The GST Council is scheduled to discuss ending tax exemptions for select government agencies on October 8. Moving all entities to a uniform 3 percent GST structure could alter commercial bullion import costs.\n• Borrowers facing higher EMIs: Markets anticipate a potential 25 basis point rate increase from the Reserve Bank of India on Wednesday. A rate hike would directly lift borrowing costs across home, vehicle, and retail loans.\n• For bullion investors: International spot prices have retreated to two-month lows amid strong bond yields and surging crude oil. Investors in sovereign gold bonds or digital bullion should prepare for continued short-term price volatility.\n\nWhy this happened\nA combination of surging energy prices, multi-decade high Treasury yields, and looming central bank decisions triggered the sharp selloff in bullion markets.\n\n• Surging crude oil and geopolitical conflict: Brent crude crossed $101 per barrel as Iran intensified tanker attacks in the Strait of Hormuz and Saudi forces clashed with Houthis. High energy prices renewed inflationary concerns, undermining precious metal sentiment.\n• Elevated US Treasury yields: Benchmark 10-year Treasury yields remained elevated near 5.26 percent and are up 110 basis points year-to-date. Persistent yields driven by fiscal risks and tech debt issuance reduce the appeal of non-yielding bullion.\n• Monetary tightening expectations: Markets are bracing for the Federal Reserve meeting minutes and a potential 25 basis point rate hike by the RBI. Fears of prolonged tight monetary conditions encouraged traders to liquidate metal positions.\n\nQuestions & Answers\n\n1. What were the gold and silver rates on the MCX on Wednesday?\nMCX silver declined by Rs 1,300 to Rs 2,25,966 per kg, while MCX gold fell by Rs 492 to trade around Rs 1,49,628 per 10 grams.\n\n2. What are the prevailing international spot prices for gold and silver?\nSpot gold dropped 0.50 percent to around $4,144 per ounce, while spot silver fell 1 percent to $60.86 per ounce, both reaching two-month lows.\n\n3. Why are crude oil benchmarks advancing?\nCrude oil rose as Brent climbed above $101 and WTI passed $90 per barrel due to intensified Iranian tanker attacks in the Strait of Hormuz and Saudi clashes with Houthis.\n\n4. What decision is anticipated from the Reserve Bank of India policy meeting?\nMarkets expect the RBI Monetary Policy Committee headed by Governor Sanjay Malhotra to announce a 25 basis point rate hike, ending an 11-month dovish stance.\n\n5. What proposal regarding bullion imports is the GST Council considering?\nThe GST Council is considering ending preferential exemptions for nominated agencies like MMTC and STC to establish a uniform 3 percent GST structure across all importers.\n\n6. Where does the 10-year US Treasury yield stand currently?\nThe 10-year US Treasury yield is trading around 5.26 percent after easing back from its 24-year peak of 5.33 percent.",
  "url": "https://trendkia.com/en/money/mcx-para-sone-aura-chandi-men-bhari-giravata-kachche-tela-men-teji-aura-byaja-daron-ki-ashnka-se-phisali-kimati-dhatuen-44351",
  "category": "Money",
  "publishedAt": "2026-10-07",
  "tags": [
    "Gold Price",
    "Silver Price",
    "MCX Gold",
    "MCX Silver",
    "Crude Oil",
    "RBI Monetary Policy",
    "GST Council",
    "US Federal Reserve"
  ],
  "language": "en",
  "site": "TrendKia"
}