Gold, silver ETFs tumble up to 4% as precious metals melt on rising yields - Business Standard

AI desk brief

Gold and silver ETFs fell sharply as higher Treasury yields and rising odds of a Fed hike hit bullion: MCX Gold October dropped over ₹4,000/10g to ₹1,46,784 and Silver December fell ₹8,500/kg to ₹2,26,230. The macro trigger is clear: the US 10-year yield rose to 5.13%, the highest since 2007, while the 30-year hit 5.44%, the highest since 2004, with CME FedWatch now pricing a 68.1% chance of a 25 bp hike at the October 28 meeting versus 31.9% for unchanged. Ashish Rajodiya of PL Capital said elevated crude and Strait of Hormuz tensions are reinforcing Fed-tightening expectations, lifting the dollar and curve steepness and pressuring non-yielding bullion.