Gold and Silver Prices Soar on MCX Amid Cooling Inflation and Geopolitical Tensions

The prices of gold and silver have surged on the Multi Commodity Exchange (MCX) due to several factors. One reason is the cooling United States inflation figures, which has led market participants to adjust their monetary policy outlook.

According to data from the US Bureau of Labor Statistics, the headline consumer price index dropped to an annual rate of 3.40 per cent in July 2026. This slowdown in inflation has increased expectations of Federal Reserve interest rate cuts, making bullion more attractive for investors.

The prices of gold and silver have also been affected by heightened geopolitical tensions in West Asia. Central banks are increasing their demand for physical gold as a hedge against uncertainty. The World Gold Council reported that central bank net gold demand picked up significantly, reaching 289 tonnes in the second quarter alone.

In addition to these factors, expanding industrial consumption of silver is also driving its price up. According to The Silver Institute's World Silver Survey, global industrial silver fabrication is projected to reach an all-time high of 710 million ounces this year. This surge is fueled by a 20 per cent annual increase in demand from the solar photovoltaic and green energy sectors.