Gold Futures Drop Rs 833 to Rs 1,50,466, Silver Falls Rs 1,249

Gold futures extended their decline for a fourth consecutive session on Thursday, with prices pressured by a stronger US dollar and elevated US Treasury yields.

On the Multi Commodity Exchange (MCX), October gold futures fell Rs 833, or 0.55 per cent, to Rs 1,50,466 per 10 grams. The decline came amid weakness in international bullion markets and growing expectations of tighter US monetary policy.

Silver futures also moved lower during the session. December silver contracts on MCX declined Rs 1,249, or 0.53 per cent, to Rs 2,34,646 per kilogram. The fall was attributed largely to reduced positions by market participants. In international trade, silver slipped 0.55 per cent to USD 64.07 an ounce.

Aamir Makda, Commodity and Currency Analyst - Technical Research at Choice Broking, said gold remained under pressure because of the firm US dollar and higher Treasury yields.

The weakness intensified after stronger-than-expected US private-sector employment data raised concerns over inflation and boosted expectations that the Federal Reserve could maintain a tighter interest-rate stance.

In overseas markets, Comex gold for December delivery fell USD 17.93, or 0.42 per cent, to USD 4,300.47 an ounce.

Ashish Rajodiya, Head of Commodities at PL Capital, said gold was trading around USD 4,300 after a sharp previous-session decline, as dollar strength and rising bond yields reduced the appeal of the non-yielding asset.

The US dollar index rose to 101, a nearly two-month high, while the 10-year Treasury yield approached 5.11 per cent, its highest level since July 2007.

Rajodiya said upcoming US economic data would remain important for bullion prices. Strong readings could increase pressure on gold, while signs of a cooling labour market or renewed geopolitical tensions could revive demand.