Why Gold and Silver Falling Today: MCX & Global Reasons
Why are gold and silver falling today? Check the latest MCX and global prices, oil and Fed rate concerns, US yields, dollar impact and key factors.
Summary: Gold and silver fell sharply on September 28, 2026 as higher crude oil prices increased inflation concerns and strengthened expectations of further US Federal Reserve rate hikes. Rising yields, dollar-related pressure and geopolitical uncertainty added to the correction, with declines visible in both international bullion markets and MCX futures.
Key Takeaways
- Rising crude oil prices stoke fears of elevated inflation and cause markets to price in rate hikes.
- Higher U.S. Treasury Yields punish other yield-less assets, including gold.
- International gold prices have fallen to their lowest level in around seven weeks.
- Gold and silver futures on the MCX fell beneath ₹1,50,000 and ₹2,30,000 per kg respectively.
- Silver has the added characteristic of being a key industrial metal and thus has greater price volatility.
- Factors impacting the price of gold including crude oil and the U.S. Federal Reserve’s expected policy actions are important for Indian investors to track.
Why gold and silver falling today? Precious metals came under selling pressure on Monday, September 28, 2026. International prices and futures on the Multi Commodity Exchange (MCX) declined. The current case is energy prices. The recent increases in crude oil prices and re-emerging inflation concerns worked in unison to increase US Treasury yields and Fed Funds rates expectations.
In India, the case is similar for futures on the MCX and spot rates. The price of bullion in India is generally a function of international prices; however, several other factors can influence the price including the US dollar, US interest rates, crude oil prices and geo-political risks. Given India's high trade and current account deficits and reliance on external capital, India is somewhat weak and vulnerable to global market risks. The rupee can also put pressure on local commodity prices.
Why Gold and Silver Falling Today?
The main pressure points can be summarised as follows:
Higher crude oil prices: Elevated oil prices are increasing concerns about inflation.
Higher-for-longer rate expectations: Traders are increasingly pricing the possibility of additional US Federal Reserve rate increases.
Rising US Treasury yields: Higher yields increase the opportunity cost of holding non-interest-bearing assets such as gold.
US dollar influence: A firm dollar can make dollar-denominated precious metals relatively more expensive for international buyers.
Profit booking: Gold and silver had experienced a substantial rally earlier, leaving room for position unwinding when macro conditions changed.
Geopolitical and oil-market developments: The US-Iran situation and uncertainty around the Strait of Hormuz are keeping energy markets volatile.
Reuters reported that spot gold fell more than 3% during Monday's session to its lowest level in more than seven weeks, while higher oil prices strengthened expectations of further US rate increases.
MCX Gold Price Today: September 28, 2026
On the domestic commodity exchange, gold futures opened lower and subsequently moved below the ₹1.50 lakh-per-10-gram level. Business Standard reported that the benchmark October MCX Gold contract opened at ₹1,50,100 per 10 grams, compared with a previous close of ₹1,50,851. At around the time of its report, the contract was trading at ₹1,48,100.
Another market report put the October gold futures decline at approximately ₹3,214 per 10 grams to ₹1,47,667 during the morning session. Because futures prices move continuously, investors should treat these figures as time-specific market levels rather than an end-of-day closing price.
Market | Latest reported level | Move |
|---|---|---|
MCX Gold October 2026 | Around ₹1,47,667–₹1,48,100 per 10 g | Sharp decline during the morning session |
COMEX Gold | Around $4,225–$4,230 per oz | Down sharply; seven-week low |
Spot Gold | Around $4,223.95 per oz | Down 1.5% in an early international reading |
Important: MCX prices are live futures prices and can change significantly during the trading session. The above figures were reported on September 28, 2026 and should be refreshed before publication or reuse as a live-price table.
MCX Silver Price Today: September 28, 2026
Silver has also faced heavy selling. The September 2026 MCX Silver contract was reported down ₹6,661 to approximately ₹2,28,035 per kg. Business Standard separately reported that the benchmark December contract opened at ₹2,32,300 per kg and later traded around ₹2,28,550.
Internationally, spot silver was reported around $62.64 per ounce, down 2.6% in an early session reading. COMEX silver also slipped below the $62.50-per-ounce area.
Silver can sometimes experience larger percentage moves than gold because it combines precious-metal investment demand with significant industrial demand. Consequently, changes in economic-growth expectations, manufacturing activity, currency conditions and investor positioning can amplify its volatility.
International Gold and Silver Prices Are Driving the Move
Gold is globally priced primarily in US dollars, making international bullion markets an important reference point for Indian commodity traders. On September 28, spot gold was reported at around $4,223.95 per ounce, while US gold futures were around $4,257.90 in an early reading. Spot silver was around $62.64 per ounce.
COMEX gold had fallen to around $4,230 per ounce, touching a seven-week low, while silver moved below $62.50 per ounce.
This matters for MCX because domestic futures are influenced by international bullion prices as well as the rupee-dollar exchange rate and domestic market factors. Therefore, an overnight decline in international gold does not necessarily translate into an identical percentage move on MCX.
How Rising Crude Oil Prices Are Hurting Gold and Silver
Some of the latest moves in the gold market can be attributed to crude oil. Uncertainty regarding the US/Iran situation and the flow of oil through the Strait of Hormuz have put a premium on oil. During trading on Monday, Brent oil prices touched $105/barrel.
Oil is one of the major inputs in the economy and an increase in oil prices results in higher inflation. With inflation pressures rising, the markets may price in higher interest rates.
Higher interest rates make the price of gold rise, however, a rising rate environment may reduce the price of gold. This is because gold does not earn interest and is therefore perceived as less attractive relative to other assets.
Increased volatility in the marketplace will cause investor's risk appetite to fall, thus increasing the demand for "safe haven" assets such as gold. Gold's value may also increase due to rising geopolitical tensions.
Anticipated Fed Funds Rate Increases and US Bond Yields
There are a number of factors contributing to the correction in the gold market. As reported by Reuters, on September 21 the Fed increased its target range by 25 basis points to 3.75-4.00%. Before the meeting, there was a high probability, according to market participants, that the Fed would increase its target range in October.
Along with the expected tightening of monetary policy, an increasing likelihood of a more hawkish policy caused U.S. Treasury yields to increase, which, as reported, helped to drive the gold market lower.
For gold investors, the important point is that a rise in inflation does not automatically mean gold must rise. The market also considers how central banks are expected to respond to that inflation. If inflation leads to expectations of tighter monetary policy and higher real or nominal yields, gold can come under pressure.
Why is Silver Dropping More than Gold?
Silver is unique from other precious metals because it holds industrial uses, which increases its demand. Like gold, it is also viewed as a safe-haven asset. Because of these distinct qualities, it possesses a stronger economic correlation.
When risk is broadly off, commodities are sold across the board. Because of its higher market volatility, silver can suffer larger corrections than gold. This selling is also exacerbated by the loss of investor confidence and increased economic uncertainty. As evidenced by recent market activity, an economic slowdown is quite plausible.
What Is the Dollar's Role in Gold Prices?
The prices for gold and silver in the international markets are shown in US dollars. Generally, a rise in the dollar will result in a rise in the price of dollar-related commodities. This is because a rise in the dollar means that commodities denominated in dollars will cost more to buyers using other currencies.
In the case of Indian investors, there are further implications. Even if the price of gold falls in the international market, the rupee may have depreciated against the dollar. This means that the investor may end up paying more than what the international market is quoting. Alternatively, if the rupee appreciates, then a fall in international prices may mean that the investor is getting a good deal.
Because of this, it may be expected that MCX gold prices will not always be in line with prices of COMEX gold.
MCX Gold and Silver vs International Prices
Factor | International Market | Indian MCX Market |
|---|---|---|
Primary reference | COMEX/spot bullion markets | MCX futures |
Currency | US dollars | Indian rupees |
Gold quotation | Generally dollars per troy ounce | Rupees per 10 grams |
Silver quotation | Generally dollars per troy ounce | Rupees per kilogram |
Additional Indian influence | — | USD/INR, domestic market conditions and contract specifications |
MCX explains that its bullion contracts include gold and silver products and that trading prices, volumes and open interest are available through its market systems. Investors should check the specific contract month rather than comparing unrelated futures contracts.
What Investors Should Watch Next
The direction of gold and silver will remain sensitive to incoming macroeconomic information. Investors tracking the market should watch:
US inflation indicators and the Federal Reserve's policy signals.
US employment and labour-market data.
US 10-year and 30-year Treasury yields.
US dollar movement and the dollar index.
Crude oil prices and developments around the Strait of Hormuz.
US-Iran and broader Middle East geopolitical developments.
Rupee movement against the US dollar.
MCX futures volume, open interest and contract-specific price action.
Markets are also watching US labour-market and inflation indicators scheduled during the week, including job openings, ADP employment data, PCE inflation and nonfarm payrolls.
Will Gold and Silver Continue to Fall?
Precious metals can reverse course. Rapid changes in the aforementioned aspects of the market, including interest rates and geopolitics, can cause a reversal in the prices of gold and silver.
Gold prices can improve if the US Dollar weakens as a result of lower Treasury yields and decreased inflation.
The direction of the investment market largely depends on the current conditions and future expectations. A decline in prices doesn't mean a further decline in prices. This article explains the conditions that affected prices today.
Educational disclaimer: This market update is meant for education only. It is not an endorsement to purchase or sell gold or any other commodity.
Related reading: Commodity Trading in India, Explore Commodity Trading.
Frequently Asked Questions
Why are gold and silver falling today?+
Gold and silver are under pressure mainly because higher crude oil prices have increased inflation concerns, strengthening expectations of further US rate hikes. Higher yields and dollar-related pressure are also weighing on precious metals.
Why is MCX gold falling today?+
MCX gold is being pressured by the decline in international gold prices, higher US yields, rate-hike expectations and crude-oil-driven inflation concerns. USD/INR movements can also affect the domestic price.
Why is silver falling more than gold today?+
Silver generally has higher volatility than gold and is influenced by both investment demand and industrial-demand expectations. A broad precious-metals correction can therefore produce a larger percentage move in silver.
What is the international gold price today?+
On September 28, 2026, spot gold was reported around $4,223.95 per ounce in an early international market reading, while COMEX gold traded around the $4,230 area. Prices change continuously.
What is the MCX gold price today?+
During the September 28, 2026 morning session, MCX October gold was reported around ₹1.48 lakh per 10 grams after moving below ₹1.50 lakh. The exact live price changes continuously.
What is the MCX silver price today?+
MCX silver was reported around ₹2.28 lakh per kg during the September 28, 2026 morning session. Different contract months can trade at different prices, so the exact contract should be checked.
Will gold and silver continue to fall?+
A continued decline cannot be predicted with certainty. The next moves will depend on US inflation and employment data, Fed policy expectations, Treasury yields, the dollar, crude oil and geopolitical developments.
Does a fall in international gold always mean MCX gold will fall by the same percentage?+
No. MCX prices also reflect USD/INR movements, domestic market conditions, contract specifications and local pricing factors, so the domestic percentage move can differ from the international move.
Disclaimer
This article is for investor education only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security.
Markets involve risk, including possible loss of capital. Please do your own due diligence or consult a registered adviser.
Research views are informational and may change without notice. Past performance is not indicative of future results.
MCX prices are time sensitive and change frequently. Also, prices may differ from international prices. To make an informed trading decision, simultaneously check MCX contract months and trading conditions, international prices and margin requirements.
Research Team
InvestEdge360 Research
Content Research Desk
Insights from InvestEdge360's research desk — written to help investors learn with clarity and invest with discipline.
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