Precious metals took a hit in Indian markets today as a fortified US dollar sparked a 2% plunge in gold and silver prices. The sell-off, evident from early trading, was fueled by gains in the dollar index and a crude oil rally that crossed $100 per barrel.
MCX data showed gold futures for the June 2026 contract down 0.56% or ₹859 at ₹1,51,793 by mid-morning. Intraday swings saw it dip to ₹1,51,457 before recovering to ₹1,51,999, capturing the market’s jittery mood.
Silver bore the brunt, slumping 1.93% or ₹4,693 to ₹2,38,581 for the May 2026 lot. It hit a low of ₹2,37,190 and peaked at ₹2,39,068, mirroring broader risk aversion.
Globally, the malaise spread with gold dropping 0.84% to $4,747/oz and silver tumbling 2.33% to $74.70/oz. Experts highlighted gold’s tight trading band of $4,700-$4,750 on Comex, warning of downside risks below $4,650 toward $4,600-$4,570. Overhead resistance at $4,750-$4,770 caps any rebound hopes.
The dollar index climbed 0.36% to 98.8, bolstering the currency’s appeal and dragging the rupee down 55 paise at open. Meanwhile, crude oil’s 8% surge past $100 added inflationary fears, diverting capital from bullion.
This confluence of factors has shifted sentiment bearish in the short term. Investors are dumping positions amid expectations of sustained dollar strength, influenced by robust US data and policy tightening. As markets digest these dynamics, gold and silver may test lower supports, offering potential buying opportunities for long-term holders.
