Gold Prices Crash 4.1% on MCX, Silver Falls Nearly 5% Amid Fed Rate Concerns
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Gold and silver futures recorded sharp weekly losses on the Multi Commodity Exchange (MCX), pressured by a stronger US dollar, elevated bond yields and uncertainty over the Federal Reserve’s next interest-rate decision.
December gold futures fell ₹5,847, or 4.1%, to approximately ₹1.36 lakh per 10 grams. Silver contracts declined ₹8,791, nearly 5%, to around ₹1.76 lakh per kilogram. These are futures-market prices and may differ from retail bullion rates.
The decline mirrored weakness overseas. Comex December gold futures shed $188.60 to $3,886.30 an ounce, while silver lost $2.82, or 5.43%, to $49.12 an ounce.
Investors are weighing the prospect of tighter US monetary policy against persistent inflation. The Federal Reserve held its benchmark rate at 3.75%–4% in October, while subsequent comments from policymakers kept attention focused on its December meeting. Higher interest rates generally increase the opportunity cost of holding non-yielding assets such as gold.
US consumer prices increased 0.4% in October, according to official figures cited in market coverage. In India, annual retail inflation rose to 6.09%, above the Reserve Bank of India’s 6% upper tolerance threshold, reinforcing concerns about price pressures.
Jateen Trivedi, Vice-President and Research Analyst at LKP Securities, said the near-term outlook remained cautious, with currency movements and international bullion prices likely to influence domestic trading.
Analysts also identified US-Iran tensions as a source of uncertainty. An escalation could lift crude oil prices and inflation expectations, although geopolitical instability may simultaneously strengthen safe-haven demand for gold.
Longer-term demand offers some support. The World Gold Council reported central-bank purchases of 321 tonnes in the third quarter of 2026 and $2.7 billion in global gold exchange-traded fund inflows in October.
Markets will now track Federal Reserve signals, forthcoming economic data and geopolitical developments for direction amid heightened volatility across global financial markets.
December gold futures fell ₹5,847, or 4.1%, to approximately ₹1.36 lakh per 10 grams. Silver contracts declined ₹8,791, nearly 5%, to around ₹1.76 lakh per kilogram. These are futures-market prices and may differ from retail bullion rates.
The decline mirrored weakness overseas. Comex December gold futures shed $188.60 to $3,886.30 an ounce, while silver lost $2.82, or 5.43%, to $49.12 an ounce.
Investors are weighing the prospect of tighter US monetary policy against persistent inflation. The Federal Reserve held its benchmark rate at 3.75%–4% in October, while subsequent comments from policymakers kept attention focused on its December meeting. Higher interest rates generally increase the opportunity cost of holding non-yielding assets such as gold.
US consumer prices increased 0.4% in October, according to official figures cited in market coverage. In India, annual retail inflation rose to 6.09%, above the Reserve Bank of India’s 6% upper tolerance threshold, reinforcing concerns about price pressures.
Jateen Trivedi, Vice-President and Research Analyst at LKP Securities, said the near-term outlook remained cautious, with currency movements and international bullion prices likely to influence domestic trading.
Analysts also identified US-Iran tensions as a source of uncertainty. An escalation could lift crude oil prices and inflation expectations, although geopolitical instability may simultaneously strengthen safe-haven demand for gold.
Longer-term demand offers some support. The World Gold Council reported central-bank purchases of 321 tonnes in the third quarter of 2026 and $2.7 billion in global gold exchange-traded fund inflows in October.
Markets will now track Federal Reserve signals, forthcoming economic data and geopolitical developments for direction amid heightened volatility across global financial markets.
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