Gold and Silver Prices Plummet as Oil Rises and Rate Hike Bets Strengthen
Gold and silver prices plummeted on Monday as rising oil prices fueled inflation concerns and strengthened expectations of further Federal Reserve rate hikes. On the Multi Commodity Exchange (MCX), MCX silver futures for September 2026 delivery dipped by Rs 6,661 to Rs 2,28,035 per kg, while gold futures for October 2026 delivery dropped by Rs 3,214 to Rs 1,47,667 per 10 grams.
The combination of higher bond yields and rising oil prices continues to weigh on gold. Oil prices surged after mixed signals around supply flows kept inflation concerns at the forefront for investors. Traders are pricing in a 66% chance of another US rate hike in October, according to CME's FedWatch Tool.
Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile this week due to fluctuations in crude oil prices, the dollar index, geopolitical tensions, and developments around the US-Iran peace talks. He recommends waiting for updates on the US-Iran peace talks before taking fresh positions in gold and silver.