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• Gold came under pressure as rising crude oil strengthened inflation concerns and expectations of tighter US monetary policy.
• Higher Treasury yields and a stronger dollar reduced demand for non-yielding bullion, pushing gold to a five-week low.
• Spot gold declined about 0.52% to roughly USD 4,276/oz, with US futures also moving lower.
• Indian spot gold fell to around INR 149,914 per 10 grams, while October MCX futures declined to about INR 150,201.
• Gold purchasing costs remain sensitive to the Federal Reserve decision, Treasury yields, oil prices and movements in the US dollar.

Gold prices moved sharply lower as rising crude oil prices, a stronger US dollar and elevated bond yields reduced investor appetite for the precious metal. The decline took bullion to its weakest level in roughly five weeks, extending pressure that had built as financial markets reassessed the outlook for US interest rates.

Spot gold fell about 0.52% to just above USD 4,276 per ounce, while US gold futures declined around 0.77% to USD 4,318 per ounce. The correction reflected growing expectations that monetary policy could remain restrictive as higher energy costs threatened to keep inflation elevated.

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Treasury yields were a major source of pressure. The benchmark US 10-year yield climbed to around 5.02%, its highest level since 2007. Higher bond yields raise the opportunity cost of holding gold because the metal does not generate interest. Dollar strength added another constraint by making dollar-denominated bullion more expensive for buyers using other currencies.

Indian prices followed the weaker international trend. October gold futures on the Multi Commodity Exchange fell about 0.68% to INR 150,201 per 10 grams, while domestic spot gold traded near INR 149,914 per 10 grams. The move below INR 150,000 highlighted how rapidly international monetary and currency conditions were feeding into domestic bullion costs.

Near-term gold pricing remains closely tied to the Federal Reserve's policy stance, Treasury yields, crude oil and the dollar. For physical buyers in jewelry, electronics and other gold-consuming industries, the recent decline has reduced acquisition costs from earlier levels, but volatility remains high. Any change in interest-rate expectations or bond yields could quickly alter purchasing conditions.