Precious metals took a hit in Indian markets today as a fortified dollar index sparked widespread selling. Gold and silver prices tumbled up to 1.6%, reflecting broader international weakness amid rising oil prices and geopolitical risks.
MCX data shows the gold futures for June 2026 at 1,52,111 rupees, reflecting a 546-rupee or 0.36% drop as of late morning. The contract oscillated between 1,51,719 rupees (low) and 1,52,200 rupees (high) in early trade.
Silver’s May 2026 contract suffered more, declining 3,987 rupees or 1.61% to 2,44,377 rupees. It ranged from 2,42,220 rupees to 2,44,730 rupees during the session.
Overseas, Comex gold eased 0.68% to 4,720 dollars an ounce, and silver dropped sharply by 2.43% to 76 dollars an ounce.
The dollar index, hovering above 98.50 after a 0.11% gain, is the key driver. Historically, dollar strength inversely correlates with precious metals performance.
Crude oil’s uptick, spurred by US-Iran frictions, amplified this trend. Brent oil rose 1.22% to 103 dollars per barrel, while WTI advanced 1.36% to 94 dollars, heightening dollar demand.
Comprising euro, yen, pound, Canadian dollar, Swedish krona, and Swiss franc, the index underscores the dollar’s dominance.
As tensions simmer, traders eye oil markets and US policy moves. This correction could signal short-term pain but long-term value for precious metals bulls bracing for volatility.
