Gold contracts for August delivery on the Multi Commodity Exchange (MCX) declined ₹1,593, or 1.04%, to ₹1.52 lakh per 10 grams. Silver also witnessed a sharper correction, falling ₹6,057, or 2.41%, to ₹2.45 lakh per kilogram as traders reduced exposure amid volatile global cues.
Analysts said bullion remains under pressure due to expectations of prolonged high US interest rates, which support the dollar and reduce the appeal of non-yielding assets like gold.
“The US Fed’s decision to keep rates unchanged, while signaling the possibility of further tightening, has created a mixed outlook for gold. A stronger dollar typically weighs on bullion, though geopolitical developments may offer intermittent support,” said Colin Shah, MD, Kama Jewelry.
Globally, market participants noted that easing geopolitical tensions following the US–Iran interim understanding reduced safe-haven demand, while expectations of tighter monetary policy continued to cap upside momentum.
“Gold faces immediate resistance in the 1.54 lakh–1.55 lakh per 10 grams zone, while 1.51 lakh per 10 grams remains a key support level. A sustained breakout is needed to confirm a stronger recovery,” said Ravi Singh, Chief Research Officer, Master Capital Services.
Silver, meanwhile, continues to show a mixed setup. While near-term prices remain under pressure, analysts highlight structural support from industrial demand, including growth in renewable energy, data centres, and AI-linked infrastructure.
“Rising US yields and a stronger dollar have weighed on precious metals sentiment. However, silver’s downside remains relatively limited due to strong industrial demand prospects,” said Pinky Yadav, Commodity Fundamental Analyst, Choice Broking.
Crude oil prices also extended losses on expectations of higher supply following geopolitical developments, adding to broader commodity weakness.
