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Gold-Silver Prices Today: On September 11, gold and silver prices fell in the international market. This decline was driven by a surge in crude oil prices and uncertainty regarding US Federal Reserve interest rates, both of which impacted precious metals.

Gold was trading at $4,369.40 per ounce on COMEX, down $37.90 or 0.86% from the previous close. The contract touched a high of $4,380.70 and a low of $4,351.30 per ounce. Silver faced greater pressure; it was trading at $63.91 per ounce on COMEX, down $1.017 or 1.57%. The session saw a high of $64.32 per ounce and a low of $63.71 per ounce.

Why are gold and silver prices falling?

One of the primary factors weighing on precious metals is the rise in crude oil prices. On Friday (September 10), Brent crude climbed above $108 per barrel, while US West Texas Intermediate (WTI) crossed $103 per barrel; both benchmarks had previously surged by more than 6% in the preceding session.

High oil prices can exacerbate inflationary pressures and complicate expectations regarding US monetary policy. Elevated bond yields and interest rates diminish the appeal of non-yielding assets like gold.

Vedika Narvekar, Research Analyst for Commodities and Currencies at Anand Rathi Share and Stock Brokers, stated, "Renewed pressure on gold is evident due to the recovery in oil prices."

Narvekar noted that gold had largely remained within a limited range near $4,300–$4,400 per ounce as the market awaited greater clarity on the Fed's next move. They expect gold prices in the international market to range between $4,340 and $4,450 per ounce, while on the MCX, gold could trade within the ₹1.51 lakh–₹1.55 lakh per 10 grams range.

**Support from the Dollar and ETF Flows**

This decline in precious metal prices has occurred despite certain supportive factors. A weaker US dollar has supported gold in recent sessions, while strong inflows into gold ETFs have boosted investor demand. Narvekar noted that global gold ETFs saw inflows of $18 billion in August—the second-largest monthly inflow on record. This pushed global holdings up by 121 tonnes to a record 4,189 tonnes.

Prithviraj Kothari—Managing Director of RiddiSiddhi Bullions Limited, President of the India Bullion and Jewellers Association (IBJA), and Chairman of the Jain International Trade Organisation—stated that a weakening dollar, fiscal concerns in the US, and geopolitical risks are providing support to gold prices.

However, he warned that higher-than-expected US inflation figures could exert further pressure on bullion through rising yields. Kothari expects gold prices to remain broadly within the $4,300–$4,500 per ounce range and added that if silver holds above $67 per ounce, it could see further gains.

**Why Crude Oil Matters for Indian Bullion Prices**

Rising oil prices are particularly significant for Indian markets, as they can impact both inflation expectations and the rupee.

Gaurav Garg, Head of Research at Lemonn, stated that high crude oil prices and a weak rupee remain key risks for Indian inflation and MCX commodities. At the same time, he noted that the weakening dollar is providing support to precious metals. In his market analysis on September 10, Garg projected gold prices at approximately $4,414 per ounce and silver at $67.50 per ounce, while also highlighting the impact of rising crude oil prices and expectations regarding US interest rates on the bullion market.

Recent market commentary placed the rupee in the range of approximately 95.10–95.25 against the US dollar. A weakening rupee can provide support to domestic gold and silver prices, as imported bullion becomes more expensive in rupee terms.

**Higher Volatility in Silver**

Silver is exhibiting greater volatility compared to gold; on Friday (September 10), silver fell by 1.57%, whereas gold declined by 0.86%.

Vikram Subburaj, CEO of Giottus.com, noted that silver outperformed gold in recent MCX sessions; however, a sharp drop in open interest suggests that short covering contributed to this rally. He mentioned that in recent MCX sessions, gold was testing the ₹1.54 lakh per 10 grams level, while silver prices hovered around ₹2.44–₹2.45 lakh per kilogram.

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