Gold prices in India fall as U.S. yields rise

On the global side, U.S. rates are keeping gold traders on edge. The 10-year Treasury yield was seen rising to 4.822% on Sept. 2 from 4.79% a day earlier, a level that typically supports the dollar and raises the opportunity cost of holding non-yielding bullion. That backdrop helps explain why gold-linked funds have been volatile even after a strong surge in late August.

Exchange-traded products tied to gold reflected the swing. SPDR Gold Shares, or GLD, rose 1.5% to $402.78 on Sept. 2 after falling 2.9% the previous day, while iShares Gold Trust, or IAU, gained 1.5% to $82.55. The big miners were firmer too, with VanEck Gold Miners ETF, or GDX, up 3.1% to $97.63 after a 4.1% drop on Sept. 1.

But the price action also shows a market losing momentum. GLD remains below its 200-day moving average and its relative strength index has cooled to 52.3 from overbought levels above 90 earlier in the year, while GDX’s RSI at 61.9 suggests the recent rally has eased from stretched conditions. Adalytica’s Gold Fear & Greed Index showed “Extreme Fear” at 0, down 92% over seven days, pointing to a sharp deterioration in near-term sentiment.

For investors, that leaves gold caught between two forces: physical demand in India that could improve as prices soften, and macro pressure from higher yields and a firmer dollar. The next move will likely hinge on whether U.S. rate expectations ease enough to revive bullion or whether sellers keep pressing into a seasonally important demand window.