Gold and silver prices tumbled on Tuesday as a surging oil market and rising U.S. Treasury yields sparked a round of aggressive profit-taking, briefly sending domestic gold futures below the key threshold of 155,000 rupees per 10 grams on the Multi Commodity Exchange (MCX).

The October gold contract on the MCX slid to an intraday low of 154,925 rupees per 10 grams—down more than 1,000 rupees from its previous close—before paring losses to trade near 155,160 rupees, a drop of 780 rupees, or 0.50%, during the morning session. Silver futures experienced steeper selling pressure, falling by more than 2,600 rupees per kilogram as speculative traders scrambled to lock in recent gains.

The sharp pullback follows a sustained rally that pushed precious metals to multi-session highs. Tuesday’s retreat was catalyzed by a spike in crude oil prices, which reignited inflation fears and eroded market expectations for an immediate easing of U.S. monetary policy. Higher yields on U.S. Treasuries added further headwinds, raising the opportunity cost of holding non-yielding assets such as gold.

Despite the abrupt downturn, market observers view the selloff as a routine correction within a broader bull market rather than a fundamental shift in sentiment. Precious metals have delivered double-digit gains over the past year, making periodic profit-taking a standard feature of the market’s trajectory.