Gold, silver slide up to 1% on MCX as US yields rise, Iran tensions persist
Synopsis
Gold and silver are under simultaneous pressure from two directions on 29 September: rising US yields are eroding the appeal of non-yielding bullion, while the US-Iran standoff over the Strait of Hormuz — with Trump rejecting Tehran's reopening proposal — has introduced a conflicted safe-haven dynamic. With spot gold already at a seven-week low, the next diplomatic or Fed signal could be decisive.
Key Takeaways
Gold futures (December) on the MCX were trading at ₹1,48,410 per 10 grams , down 0.33 per cent , on 29 September .
Silver futures (December) fell to ₹2,25,338 per kg , down 0.93 per cent , with an intraday low of ₹2,24,500 .
Spot gold had already lost 4 per cent in the previous session, hitting a seven-week low .
The twin headwinds are elevated US Treasury yields and the unresolved US-Iran standoff over the Strait of Hormuz .
Key gold resistance is at ₹1,50,000–₹1,50,700 ; a break below ₹1,48,000 could trigger further losses.
Silver faces a decisive test at ₹2,24,000 ; a breach could expose it to ₹2,20,000 .
Gold and silver prices on the Multi Commodity Exchange (MCX) fell up to 1 per cent on Tuesday, 29 September, as elevated US Treasury yields and uncertainty surrounding the US-Iran standoff over the Strait of Hormuz weighed on bullion sentiment.
MCX Levels: Gold and Silver in the Red
Gold futures (December) on the MCX were trading at ₹1,48,410 per 10 grams, down ₹487 or 0.33 per cent. The yellow metal hit an intraday low of ₹1,48,150, a decline of 0.50 per cent or ₹747, by 10:34 am IST, before touching an intraday high of ₹1,49,034.
Silver futures (December) fell more sharply, dropping as much as 1.29 per cent or ₹2,942 to an intraday low of ₹2,24,500 per kg. At last count, silver was trading at ₹2,25,338, down ₹2,104 or 0.93 per cent, having touched an intraday high of ₹2,26,359.
What Is Driving the Decline
The selling pressure in precious metals is linked to twin headwinds. First, elevated US Treasury yields have increased the opportunity cost of holding non-yielding assets such as gold and silver. Second, the unresolved US-Iran standoff over the Strait of Hormuz has kept energy prices higher, adding to macro uncertainty.
Spot gold had already fallen 4 per cent in the previous session, touching a seven-week low. Iranian officials have reportedly privately expressed pessimism about reaching an agreement with Washington before the US midterm elections in November. This comes after US President Donald Trump reportedly rejected Iran's latest proposal to reopen the critical waterway within seven days.
Technical Outlook: Key Levels to Watch
According to commodity experts, immediate resistance for gold is placed at ₹1,50,000–₹1,50,700, followed by ₹1,52,000–₹1,52,600. Support is seen at ₹1,48,000–₹1,47,300, followed by ₹1,46,000–₹1,45,300. A sustained move above ₹1,50,000 would be needed to confirm a recovery, while a decisive break below ₹1,48,000 could trigger a fresh leg lower.
For silver, the metal opened with a gap-down near ₹2,26,000 and remained below the ₹2,27,000–₹2,28,000 resistance zone — a level that flipped from support to resistance after Monday's steep decline. Immediate support is placed at ₹2,24,000–₹2,23,000, followed by ₹2,20,000–₹2,19,000. A break below ₹2,24,000 could expose the metal to the ₹2,20,000 region, experts warned.
Broader Context
The dual pressure of rising US yields and geopolitical risk typically creates a conflicted environment for gold: while geopolitical stress is bullish for safe-haven demand, higher yields make dollar-denominated assets more attractive relative to bullion. For now, the yield headwind appears to be the dominant driver. Traders will be watching both the trajectory of US rates and any diplomatic developments on the Strait of Hormuz before taking fresh directional positions.
Point of View
Yet rising US yields are overpowering that impulse. This tells you something important about where institutional money currently sits — closer to US rate bets than crisis hedges. The rejection of Iran's seven-day Hormuz reopening proposal by Washington keeps energy prices elevated, which feeds inflation expectations, which in turn supports yields — creating a feedback loop that is structurally bearish for gold in the near term. Indian retail investors who bought gold above ₹1,50,000 are now watching key support levels closely; a break below ₹1,48,000 could accelerate domestic selling pressure heading into the festive season.
NationPress
29 Sept 2026
Frequently Asked Questions
Why are gold and silver prices falling today on MCX?
Gold and silver are falling on 29 September due to elevated US Treasury yields, which raise the opportunity cost of holding non-yielding precious metals, and uncertainty over the US-Iran standoff over the Strait of Hormuz. Spot gold had already dropped 4 per cent in the previous session to a seven-week low.
What are the current gold and silver prices on MCX today?
Gold futures (December) on the MCX were trading at ₹1,48,410 per 10 grams, down 0.33 per cent, while silver futures (December) were at ₹2,25,338 per kg, down 0.93 per cent, as of 29 September 2026.
What is the US-Iran Strait of Hormuz dispute and how does it affect gold?
The US and Iran are locked in a standoff over the Strait of Hormuz, a critical global oil shipping lane. US President Donald Trump reportedly rejected Iran's proposal to reopen the waterway within seven days, keeping energy prices elevated. While geopolitical tension can support safe-haven demand for gold, the overriding factor currently is rising US yields, which are suppressing bullion prices.
What are the key technical levels for gold on MCX?
Commodity experts place immediate resistance for MCX gold at ₹1,50,000–₹1,50,700, followed by ₹1,52,000–₹1,52,600. Support is at ₹1,48,000–₹1,47,300, followed by ₹1,46,000–₹1,45,300. A move above ₹1,50,000 is needed to confirm recovery; a break below ₹1,48,000 could trigger fresh declines.
What are the key levels for silver on MCX?
Silver faces immediate resistance at ₹2,27,000–₹2,28,000, followed by ₹2,32,000–₹2,33,000. Support is at ₹2,24,000–₹2,23,000, and a decisive break below that could expose the metal to the ₹2,20,000 region, according to commodity experts.
