Gold slips below ₹1.55 lakh; silver plunges over 3%
What's the story
Gold and silver prices witnessed a sharp decline in the Indian markets on Monday. The fall was mainly due to weak global cues and profit-booking after last week's rally fueled by softer US inflation data. On the Multi Commodity Exchange (MCX), gold futures for April 2026 delivery fell nearly 1%, slipping below the ₹1.55 lakh per 10gm mark. Silver futures for March 2026 delivery dropped over 3%, trading below ₹2.37 lakh per kg.
Global impact
Gold, silver prices in international markets
The fall in domestic prices was mirrored by losses in international markets. In early Asian trade, gold fell 1.1% to $4,994.60 per ounce, falling back below the psychological level of $5,000 an ounce. Silver also witnessed a decline of 3.8%, trading at $75.04 per ounce. Analysts have attributed this correction to profit-booking and thin global trade due to US markets being closed for Presidents Day holiday and Chinese markets shut for Lunar New Year celebrations.
Market response
Last week's rally on account of US inflation data
Last week, bullion prices had surged after softer-than-expected US inflation data strengthened expectations of monetary easing by the Federal Reserve. The US consumer inflation rate rose 2.4% year-on-year in January, lower than market estimates and down from December's 2.7%. This data pulled down US Treasury yields and increased market bets on rate cuts later this year.
Future expectations
Geopolitical tensions continue to support bullion demand
Manav Modi, a commodities analyst at Motilal Oswal Financial Services, said markets are currently pricing in the possibility of multiple rate cuts this year. He added that these potential cuts could support bullion inflows. Despite the fall on Monday, analysts believe geopolitical tensions and safe-haven demand continue to underpin sentiment. Reports of the US deploying USS Gerald R Ford to the Middle East amid stalled Iran nuclear talks have kept risk perceptions elevated.
Anticipated data
Key macroeconomic indicators to watch out for
Market participants are now looking forward to upcoming US macroeconomic indicators, especially the Personal Consumption Expenditures (PCE) price index and minutes of the Federal Open Market Committee (FOMC). These will provide further clarity on the interest rate trajectory. According to Axis Securities's weekly commodity derivatives snapshot, both metals have witnessed heightened volatility amid cross-asset movements and shifting rate expectations.