Why Is Gold Price Dropping Today?
Gold prices fell 1.8% to $1,920 per ounce on October 26, 2026, as the U.S. Dollar Index strengthened 0.5% to 106.8 following hawkish Fed comments. This inverse correlation pressured gold as investors favored yield-bearing assets amid rising real yields, with the 10-year TIPS yield climbing to 1.9%.
Why Is Gold Price Increasing in India?
In India, gold prices surged to ₹62,500 per 10 grams, up 2.1% week-over-week, driven by festive demand and a depreciating rupee (INR at 84.2/USD). Local premiums widened to $12 per ounce, reflecting strong physical buying despite global price weakness.
Wheat and Corn Markets Under Siege
Wheat futures on CBOT rose 4.2% to $8.15 per bushel, the highest since June, as Australia's ABARES cut its wheat crop forecast by 18% to 26 million metric tons due to prolonged drought. Corn futures gained 2.8% to $5.60 per bushel, with U.S. exports up 12% year-to-date, straining global stocks.
Soft Commodities and Shipping Strains
Sugar prices climbed 3.5% to 22.5 cents per pound as Brazil's center-south region faced delayed harvests, while coffee robusta hit a record $4,200 per metric ton due to Vietnam's drought. Baltic Dry Index rose 8% to 2,150 points, signaling higher freight costs that could further inflate food prices.
