Gold and silver prices turn negative, dollar near six month high

The dollar hovered around a more than six-month high, while benchmark 10-year Treasury yields were near their 16-year peak.

Gold  and Silver prices turned negative on a week and month basis on September 26. Gold currently faces stiff resistance at $1930 per ounce.

Gold prices turned negative as the U.S. dollar and Treasury yields climbed, as investors awaited a key consumer inflation report for more cues on whether the Federal Reserve will hike interest rates once again this year.

Also Read: Chinese gold buying is driving a paradigm shift in bullion

Spot gold was down 0.1 percent to $1,913.25 per ounce by 0403 GMT, while, U.S. gold futures fell 0.1 percent to $1,932.20

Among other precious metals, spot silver fell 0.6 percent to $22.97 per ounce.

The dollar hovered around more than six-month high, while benchmark 10-year Treasury yields were near their 16-year peak.

Also Read: Gold loan deep dive: Banks in retreat, but no cakewalk for Manappuram, Muthoot

Reflecting investor sentiment, SPDR Gold Trust, the world's largest gold-backed ETF, said its holdings fell on Friday to their lowest level since January 2020.

Fed officials warned on September 22 of further rate hikes even after voting to hold the benchmark rate steady last week, with three policymakers saying they remain uncertain about whether the inflation battle is over.

Latest Gold Prices

The latest Mumbai Gold Rate on August 26  is as follows:

The 24-carat 999 gold bar of 10 grams is trading at Rs 5,900. On the other hand, the 22-carat gold rate for a 10-gm piece of jewellery stands at Rs 5,640, while the rate for an 18-carat jewellery item is Rs 4,640. These prices have been sourced from Shree MumbaDevi Dagina Bazaar Association, and do not include a 3 per cent Goods and Services Tax (GST).

24-carat 999 gold bar of 10 grams is trading at Rs 5,900 in Chennai and silver is trading at Rs 78000. 22-carat gold rate stood at Rs 5510 in Delhi and silver was priced at Rs 75,800.

24-carat gold is priced at Rs 5495 and silver is priced at Rs 75,800.