Gold and silver prices witnessed a sharp decline on MCX, with gold slipping below ₹1.38 lakh per 10 grams and silver hitting a 6% lower circuit. The fall follows weakness in global markets amid rising US-Iran tensions, inflation concerns, and expectations of higher interest rates.
Gold, Silver Extend Losses as Global Cues and Rate Fears Weigh
New Delhi: Gold and silver prices fell sharply on the domestic futures exchange (MCX) on Monday. Weakness in global markets and US-Iran tensions weighed on investor sentiment. Fears of rising inflation and a potential increase in interest rates have hit the bullion market.
Gold opened 3% lower at ₹1,40,158 per 10 grams on the MCX and fell to ₹1,36,403 during the day, a decline of over ₹8,000. During trading, gold fell by over 5% to hover around ₹1,36,800. Last week, gold also saw a decline of over 10%.
Silver's decline was even sharper. Silver opened 4% lower on the MCX and soon fell 6%, hitting the lower circuit. The price slipped to ₹2,13,166 per kg. Investor panic and heavy selling further weakened silver.
Gold and silver prices continue to fall globally. Spot gold fell 2.5% to around $4,372 per ounce, a four-month low. Meanwhile, US gold futures also fell by more than 4%. Silver also fell by more than 3% to around $65 per ounce.
Increasing tensions between the US and Iran have kept crude oil prices high, raising the risk of inflation. Consequently, investors are now seeing a lower likelihood of interest rate cuts and a higher likelihood of rate hikes. According to reports, the probability of a rate hike at the June 2026 Fed meeting has risen to around 22%.
According to experts, gold may fall further. Support is seen between ₹1.30 lakh and ₹1.33 lakh, and resistance is seen above ₹1.40 lakh. Meanwhile, support for silver is seen around ₹2 lakh. Investors are advised to remain cautious and book profits during the rally.
In the current situation, the market may remain volatile. Therefore, it is important to avoid hasty investments and take cautious steps. Global developments and central bank policies will determine the direction of the bullion market in the future.
