Gold and silver prices drop sharply amid profit booking and rising US bond yields

Gold and silver prices experienced a sharp correction in domestic and international markets following a period of record highs. On the Multi Commodity Exchange (MCX), gold prices fell below ₹1,54,000 per 10 grams, while silver saw significant selling pressure, dropping by approximately 2% to trade near ₹2,28,000 per kilogram.

Several factors contributed to this decline. Analysts point to heavy profit booking by institutional investors following recent rallies. Additionally, a strengthening US Dollar Index and rising US bond yields have increased the cost of gold for foreign buyers, weighing on demand.

Silver faced additional pressure due to concerns regarding sluggish industrial demand in sectors such as solar energy, electronics, and electric vehicles. While geopolitical tensions in West Asia have provided a temporary pause in the demand for safe-haven assets, market experts suggest the long-term fundamentals for precious metals remain strong, viewing the current movement as a technical correction.