Gold, silver prices fall sharply: Here's why
What's the story
Gold and silver prices have taken a major hit on the Multi Commodity Exchange of India (MCX). The fall comes as a stronger US dollar weighs on dollar-denominated bullion. Rising crude oil prices have also stoked inflation fears, reducing expectations of near-term rate cuts. This has led to a sharp decline in both gold and silver prices on MCX.
Price drop
Gold futures decline by over ₹1,800 per 10gm
MCX Gold futures for April 2026 delivery fell by over ₹1,808 or 1.1% to ₹1,59,826 per 10gm. Similarly, silver futures for May 2026 delivery also witnessed a decline of ₹3,538 or 1.3% to ₹2,64,747 per kg. The international market also saw a similar trend with spot gold slipping by 1.7% to $5,082.51 per ounce as of 02:30 GMT today.
Market impact
US dollar's strength impacts gold prices
The US dollar hit a three-month high, making gold more expensive for buyers using other currencies. This has led to a decline in demand for the precious metal. Tim Waterer of KCM Trade said that with oil prices rising to around $110 per barrel and inflation risks increasing, the likelihood of rate cuts has become less certain, prompting a correction in gold prices.
Trading tips
Expert views on market volatility and investment strategies
Manoj Kumar Jain of Prithvi Finmart has warned of high volatility in the precious metals market. He expects both gold and silver to remain volatile due to fluctuations in the dollar index, the ongoing US-Iran conflict, and uncertainty in global financial markets. Jain advised traders to operate within these ranges and adopt a buy-on-dips strategy. For long-term investors, he suggested accumulating gold and silver gradually during price corrections.