Gold and silver prices opened lower on the Multi Commodity Exchange (MCX) on Tuesday as a stronger US dollar and rising Treasury yields weighed on the metals, although losses were capped by reduced expectations of a Federal Reserve interest rate hike this month.

In the domestic market, MCX silver futures for December 2026 delivery were up by Rs 1,000 to Rs 2,25,127 per kg. Gold futures for December 2026 delivery dipped by Rs 415 to Rs 1,49,901 per 10 grams. Over two days, the yellow metal has declined by Rs 1,500 per 10 grams.

The dollar remained firm, making gold and other greenback-denominated commodities more expensive for holders of other currencies. Meanwhile, yields on 10-year and 30-year US Treasury bonds climbed to 24-year highs on Monday as continued weakness in the bond market weighed on sentiment.

Expectations of a US rate hike in October weakened after data released on Friday showed US job growth slowed more than expected in September, while nonfarm payrolls for the previous two months were revised lower. Traders are pricing an 87% probability of a rate increase in December, according to CME's FedWatch Tool. Higher interest rates raise the opportunity cost of holding non-yielding gold.

Separate data showed activity in the US services sector slowed in September. Strong domestic demand also stretched supply chains and pushed a measure of prices paid by businesses for inputs to its highest level in more than four years, suggesting inflation could remain elevated into 2027.

In the Middle East, Saudi-backed Yemeni government forces made a rapid advance to retake the coast around the Bab el-Mandeb Strait up to the city of Mocha, the government said. The forces pushed Iran-backed Houthis out of most of the areas they had captured last month.

Spot gold was down 0.3% at $4,128.69 per ounce by 0155 GMT, while US gold futures were little changed at $4,156.00.

Among other precious metals, spot silver declined 0.6% to $60.67 per ounce, platinum fell 0.7% to $1,710.08, and palladium eased 0.2% to $1,170.15.

Manoj Kumar Jain of Prithvi Finmart said Gold has support at $4,134-4,110 while resistance is at $4,184-4,200 per troy ounce, and silver has support at $60.60-60.00, while resistance is at $62.40-63.00 per troy ounce.

On the MCX, gold has support at Rs 1,48,800-1,48,100 and resistance at Rs 1,49,900-1,50,350, while silver has support at Rs 2,24,400-2,22,000 and resistance at Rs 2,27,700-2,29,500.

“We suggest traders must wait for some stability in the markets to take fresh positions while long-term investors can accumulate gold and silver in this market fall,” he added.

Standard gold (22 carat) prices in Delhi stand at Rs 1,09,512/8 grams while pure gold (24 carat) prices stand at Rs 1,19,456/8 grams.

Standard gold (22 carat) prices in Mumbai stand at Rs 1,09,392/8 grams while pure gold (24 carat) prices stand at Rs 1,19,336/8 grams.

Standard gold (22 carat) prices in Chennai stand at Rs 1,09,3922/8 grams while pure gold (24 carat) prices stand at Rs 1,19,336/8 grams.

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,09,392/8 grams while pure gold (24 carat) prices stand at Rs 1,19,336/8 grams.

Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here