Gold and Silver Prices Soar on MCX Amid US Inflation Slump and Fed Rate Cut Expectations

The price of gold and silver on the Multi Commodity Exchange (MCX) has been rising, with investors showing increased interest in precious metals. The surge can be attributed to several factors, including cooling US inflation and expectations of Federal Reserve rate cuts.

In July 2026, the US Bureau of Labor Statistics reported a drop in the annual consumer price index (CPI) to 3.40 per cent. This decrease has led market participants to adjust their monetary policy outlook, with traders assigning an implied 69.90 per cent probability that the Fed will hold interest rates steady at their next meeting on September 16.

The heightened geopolitical tensions in West Asia have also increased central bank physical gold demand. According to the World Gold Council (WGC), central bank net gold demand picked up significantly, reaching 289 tonnes in the second quarter alone. Gold remains the primary hedge of choice for nations during periods of sustained cross-border uncertainty.

Silver is also benefiting from the precious metal investment flows and sustained industrial demand. The Silver Institute's World Silver Survey projects global industrial silver fabrication to reach an all-time high of 710 million ounces this year, driven by a 20 per cent annual increase in demand from the solar photovoltaic and green energy sectors.