Gold, Silver Prices Plunge as Investors Book Profits Amid Geopolitical Tensions
Gold and silver prices plummeted on the Multi Commodity Exchange (MCX) as investors booked profits after a sharp surge in the last couple of sessions. The drop occurred despite mild US inflation data, which weakened expectations of a Federal Reserve rate hike in September.
The MCX silver futures for September 2026 delivery fell 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. Over the past two days, silver has dropped by Rs 5,000 and gold by Rs 2,600/gram.
The US producer prices remained unchanged in July as goods prices decreased and services costs rose marginally. This data strengthened expectations that the Fed could leave interest rates unchanged next month.
Geopolitical tensions also played a role, with Washington threatening to maintain a naval blockade of Iran indefinitely, increasing economic pressure on Tehran as ceasefire talks stalled.