Gold Rates Crashing Hard! Why MCX Gold Price Falls Below Rs 1.50 Lakh? Key Triggers & Predictions Ahead

Gold prices crashed sharply in India on September 28, 2026, as spot gold falls to its lowest level in seven weeks. MCX gold price has corrected below Rs 1.50 lakh and witnessed 2-3% on Monday, as treasury yields and crude oil prices touched the roof. MCX silver price declined below Rs 2.28 lakh per 1 Kg.

MCX Gold Crashes Below Rs 1.50 Lakh

The October 2026 MCX gold futures crashed Rs 3,691 or 2.45% to close at Rs 1,47,202 per 10 grams after hitting an intraday low of Rs 1,46,705 per 10 grams.

Not just that, MCX gold futures for November month expiry, nosedived by Rs 3,912 or 2.6% to close at Rs 1,48,350 per 10 grams.

Also, the gold futures for December 2026 expiry, plunged by Rs 4,074 or 2.7% to close at Rs 1,49,284 per 10 grams.

Overall, gold futures in upcoming months of 2026, are trading below Rs 1.50 lakh mark.

Explaining the deadline, N S Ramaswamy, Head of Commodity & CRM at Ventura said, gold prices have corrected sharply after the recent rally, amid a sharp rise in U.S. Treasury yields and growing expectations of further Federal Reserve tightening.

Treasury Yields + Crude Oil Prices

The 10-year US Treasury Yield surged to cross 5.2%, highest since June 2007. Also, the 30-year yield rallied to 5.52%, highest since 2004.

If spike in treasury yield was not, the strong rally in crude oil prices doubled down in pulling gold and silver lower. The stalled negotiations between US and Iran pushed US WTI and Brent Crude higher by 4% each to trade near $96 per barrel and $108 per barrel.

"Lingering geopolitical tensions around the Strait of Hormuz and West Asia are adding to inflation concerns, contributing to a stronger Dollar Index and higher bond yields, which are weighing on gold. Meanwhile, stronger-than-expected U.S. economic data has reinforced expectations of further rate hikes, with September Composite PMI rising to 58.4, its strongest pace in more than five years," added Ramaswamy.

MCX Silver Price Crashes Below Rs 2.30 Lakh

MCX silver futures scheduled to expire in November 2026, nosedived by Rs 7,007 or 2.96% to end at Rs 2,29,656 per 1Kg after hitting an intraday low of Rs 2,28,305 per 1Kg.

Silver futures for February 2027 expiry, also dropped by Rs 7,531 or 3.1% to finish at Rs 2,35,612 per 1Kg.

"Gold and silver had a punishing week, with spot gold down about 2% and spot silver down nearly 3%. The pressure came from rates, not fading safe-haven appeal: a firmer dollar, 10-year Treasury yields near 5.50% and a hot flash PMI have raised bets on another Fed hike in October," said Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd.

Spot Gold Price + Spot Silver Price

Spot gold crashed by 3.11% to trade around $4,150 per ounce and spot silver fell even harder by 4.6% to trade around $61.30 per ounce.

The unnerving tensions between US and Iran is the key reason as inflationary pressures, energy crisis and monetary policy tightening scenario remains intact.

President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, saying Tehran had overplayed its hand while adding that he expects talks to resume this week. Meanwhile, Iran said it would not soften its conditions for reopening the strategically important waterway. In the US, several Fed officials cited resilient economic growth and a robust labor market as reasons additional rate hikes could be necessary. Cleveland Fed President Beth Hammack said those factors, together with concerns over government debt, are contributing to higher long-term Treasury yields, as per Trading Economics.

Gold Rates & Silver Rates Predictions

In Prithviraj's opinion, oil swings tied to the US-Iran standoff over Hormuz have added to inflation worries rather than supporting bullion. Central bank buying may cushion further losses. With key support levels broken, traders now look to US inflation and jobs data, Fed commentary and the Iran talks.

Accordingly, he stated that spot gold has broken its important support at $4,250, with the next downside targets at $4,150 and $4,100. Spot silver has broken its important support at $62.5, with the next targets at $60 and $57.

Meanwhile, this week, markets will focus on Core PCE inflation data, the Fed's preferred inflation gauge, and final GDP data, both due Wednesday, while Nonfarm Payrolls are due Friday. Potential U.S.-Iran talks this week will also remain in focus. In the near term, gold prices are likely to remain sensitive to immediate inflation concerns and the potential response of global central banks. The near-term trend remains slightly bearish, as per Ramaswamy. He gives further predictions for MCX gold and Spot gold:

MCX Gold December: Trading near 149,427. Immediate resistance is placed at 151,000, 153,500 and 155,500, while support is seen at 148,000, 145,000 and 140,000.

COMEX Gold December: Trading near 4,194. Immediate resistance is placed at 4,260 and 4,350, while support is seen at 4,130, 4,050 and 4,000.

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