Gold and silver prices retreated in early trading on India’s Multi Commodity Exchange (MCX) on Wednesday, pressured by a strengthening US dollar and rising market expectations for Federal Reserve rate hikes.

The dollar index climbed to its highest level in over a year, reversing recent safe-haven flows and adding weight to the non-yielding assets.

Gold fell around 1%, reflecting broader profit-taking by traders against the backdrop of firmer US Treasury yields.

Silver faced steeper selling pressure than gold, with the white metal dropping approximately 2% in early deals.

Gold fell around 1%, reflecting broader profit-taking by traders against the backdrop of firmer US Treasury yields.

The divergence highlights the heightened sensitivity of industrial metals to shifting macroeconomic sentiment.

The decline follows a volatile month for precious metals in India.