Gold falls 3% to $4,150, an 8-week low; Indian prices drop in tandem

Gold plunged 3% to around $4,150 per ounce on September 28, hitting its lowest level in nearly eight weeks, with domestic Indian prices following the decline. The drop was driven by Brent crude futures above $108 per barrel and the US 10-year Treasury yield near 5.2%, which pushed the dollar index above 101 and fueled inflation fears. Domestic spot gold fell 2.63% to Rs 1,47,394 per 10 grams on MCX, while December futures declined 2.84% to Rs 1,48,923. Analysts cite uncertainty over US-Iran conflict and a possible Fed rate hike in October as key pressures. However, central bank buying, including 20.2 tonnes by China's central bank in August, and modest Indian festive demand may limit the correction's depth.