Gold and Silver Prices Tumble Amid Inflation Concerns

Gold and silver prices on the MCX have dropped by up to 1% in early deals, driven by concerns over sticky inflation. The US gold futures for December delivery declined 1% amid profit-taking after reaching an over-two-month high.

The dollar index eased by 0.10%, but failed to offset concerns over oil price volatility and its impact on inflation and interest rate hikes. Brent crude inched up by half a percent to trade above $87 per barrel due to the Middle East conflict and uncertainty over the Strait of Hormuz.

Ravi Singh, Chief Research Officer at Master Capital Services, said that softer US inflation data has strengthened expectations that the Federal Reserve could hold rates steady in September. However, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, believes MCX gold October futures may decline to ₹1,52,000 per 10 grams due to weak momentum in global markets.