Gold and Silver Prices Plummet on MCX Due to Profit Booking
The prices of gold and silver have plummeted on the MCX due to profit booking after a sharp surge in the last two sessions. Despite mild US inflation data, which weakened expectations of a Federal Reserve rate hike in September, both assets opened lower on Friday. The domestic market saw MCX silver futures for September 2026 delivery drop by Rs 2,537 to Rs 2,32,910 per kg, while gold futures for October 2026 delivery declined by Rs 1,162 to Rs 1,52,304 per 10 grams.
The US producer prices remained unchanged in July as goods prices declined and the cost of services rose marginally. This data strengthened expectations that the Fed could leave interest rates unchanged next month. The geopolitical front saw Washington threaten to keep a naval blockade of Iran in place indefinitely, increasing economic pressure on Tehran as ceasefire talks stalled.
Demand for gold has remained strong due to economic and political developments supporting interest in the metal among investors globally, particularly central banks. The Bank of Korea held 6,79,765 shares of SPDR Gold Trust, worth around $250.4 million at the end of June, according to a US SEC filing.