Gold and silver prices dropped in international markets on Wednesday, October 21, 2026, as concerns over tighter US monetary policy outweighed geopolitical risks and seasonal demand in India. On COMEX, gold futures fell $14.10, or 0.34%, to $4,128.50 per ounce, while silver futures declined $0.30, or 0.52%, to $57.70 per ounce.
The outlook for precious metals remains uncertain, caught between rising US interest rates and elevated energy prices on one side, and central-bank buying, geopolitical risks, and festive demand in India on the other. Vikas Gupta, CEO of Omniscience Capital, noted that higher inflation and interest rates could challenge gold's upward momentum, with Indian prices expected to see a modest rise before stabilizing. Global prices may remain under pressure if the Federal Reserve hikes rates further.
Geopolitical tensions, while typically supportive of gold as a safe-haven asset, are not providing strong upward momentum this time. Vikram Kasat of PL Capital highlighted that Brent crude near $108 per barrel could fuel inflation concerns, potentially keeping interest rates elevated. In India, festive and wedding-season demand may cushion domestic prices, though elevated costs could limit purchase volumes. Rajeev Sharan of Brickwork Ratings expects gold prices to move within a 5% range in the near term.
Silver, more volatile than gold, faces additional pressure due to its industrial uses. Recent declines suggest that factors supporting gold, such as central-bank purchases and jewellery demand, may not be enough to drive a sustained silver recovery. Investors should watch US inflation readings, Federal Reserve signals, Treasury yields, and developments in West Asia, along with the rupee and festive demand in India.