Gold and Silver Prices Plummet Amid Inflation Concerns and US-Iran Tensions
Gold and silver prices have been declining on the Multi Commodity Exchange (MCX) due to rising oil prices, which fuelled inflation concerns. This has strengthened expectations that the Federal Reserve could raise interest rates further.
The MCX silver futures for September 2026 delivery fell by Rs 1,542 to Rs 2,25,900 per kg, while gold futures for October 2026 delivery dipped by Rs 235 to Rs 1,46,569 per 10 grams. Over the past two sessions, the yellow metal has declined by Rs 4,300.
Traders expect inflationary pressures to persist in the coming months due to AI-related demand and higher oil prices. Fed Governor Lisa Cook said she expects inflationary pressures to persist, but did not indicate that further rate hikes would be necessary.
Markets currently see a 70.3% probability of a Fed rate hike in October, according to the CME's FedWatch Tool. Manoj Kumar Jain of Prithvi Finmart suggested that traders avoid taking long positions in gold and silver until there is clarity on the US-Iran peace talks.