MCX Gold and Silver Decline Amid Crude Oil and Rate Worries
Gold and silver prices fell sharply on Friday, continuing a multi-session decline that has left precious metals under pressure. The drop was seen across both the domestic market and global exchanges, with silver slipping below ₹2 lakh per kilogram.
Market participants pointed to a weaker global equity mood, crude oil prices staying above $100 per barrel, and the possibility that interest rates will remain high for a prolonged period. Together, these concerns have made investors reluctant to hold bullion.
On the MCX, December delivery gold began trading at ₹1,42,058 per 10 grams, down ₹1,251 or 0.87 percent from its prior close of ₹1,43,309. The metal hit an intraday low of ₹1,41,806 per 10 grams, a decline of ₹1,503 or 1.04 percent. Some recovery followed, and gold was quoted at ₹1,42,680 per 10 grams at the time of reporting, down 0.44 percent.
Silver recorded a bigger decline. The December contract opened at ₹1,96,587 per kilogram, lower by ₹3,012 or 1.50 percent, from the previous close of ₹1,99,599. At its weakest point, silver fell ₹6,799, or 3.40 percent, to ₹1,92,800 per kilogram. It later rebounded slightly and traded at ₹1,96,276 per kilogram, down 1.66 percent.
Analysts warned that elevated energy prices are pushing inflation expectations higher. If inflation stays elevated, leading central banks could keep interest rates high for longer, a scenario that is discouraging investment in gold and silver for now.
In overseas trading, gold was near $4,000 per ounce, reflecting broader weakness. On COMEX, gold dropped 0.65 percent to $4,034 per ounce, while silver lost 1.30 percent to roughly $54.29 per ounce.
Higher bond yields and dwindling expectations of interest rate cuts are weighing on non-yielding assets such as gold. However, a weaker dollar and softer US Treasury yields could help stabilise prices in the future.
Looking back, MCX gold had touched a record ₹1,80,779 per 10 grams earlier this year, and silver had reached an all-time high of ₹4,20,048 per kilogram. Gold has since moved far below its peak, while silver is trading at about half its record level.
Going forward, price movements will depend on US economic data, China-related economic signals, global geopolitical tensions and crude oil trends.