Indian Gold and Silver Prices Plummet Amid Global Weakness

Gold and silver prices dropped in Indian futures trade on August 18, mirroring weaker global prices as investors grew cautious ahead of fresh signals from the US Federal Reserve's interest-rate outlook.

The Multi Commodity Exchange (MCX) saw gold futures for October delivery decline by ₹544, or 0.35%, to ₹1.55 lakh per 10 grams, with a business turnover of 9,895 lots.

Silver futures for December delivery fell by ₹2,535, or 1.04%, to ₹2.41 lakh per kg, with 4,317 lots changing hands.

Analysts attributed the decline in Indian gold prices mainly to weaker spot demand. Gaurav Garg, head of research at Lemonn, stated that higher US Treasury yields and renewed inflation concerns linked to rising oil prices reduced demand for non-yielding precious metals.