Gold and silver are under pressure despite ongoing geopolitical tensions. The decline reflects a mix of macroeconomic factors, including inflation, oil prices, and interest rate expectations, weighing on precious metals.
As of 18:35 IST, MCX gold futures were at ₹1,41,524 per 10 grams, down ₹11,501 or 7.52%. Silver saw a steeper fall, declining ₹31,933 or 12.87% to ₹2,16,261 per kg.
Base metals also tracked lower. Aluminium traded at ₹326.60 per kg, down 4.86%, while copper fell 8.02% to ₹1,060.55 per kg, indicating a broad-based weakness across the metals pack.
For gold, the day’s range was ₹1,41,121-1,52,449 per 10 grams, while silver traded between ₹2,14,212-2,45,674 per kg, highlighting elevated volatility during the session.
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Since the onset of the West Asia conflict, metals have seen sustained pressure. Gold has recorded six consecutive sessions of losses, its longest such streak since 2024.
“Despite ongoing geopolitical tensions, bullion remained under pressure as markets focused on the likelihood of higher-for-longer interest rates amid persistent inflation risks,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.
Rising energy prices remain a key factor. Since late February, Brent crude has risen over 40%, crossing the $100 mark amid supply concerns. This sharp rally in oil seems to have pulled safe-haven demand toward energy, leaving metals on the sidelines.
“Disruptions in the Strait of Hormuz… have pushed crude prices near four-year highs, intensifying concerns over energy-driven inflation,” Modi said.
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Higher oil prices are adding to global inflationary pressures, leading markets to reassess the outlook for monetary policy and scale back expectations of rate cuts.
“Gold prices breached $4,700 on Comex as Fed held interest rates steady at 3.50–3.75% and signalled uncertainty over the inflationary and economic impact of rising oil prices,” Modi said.
“The Federal Reserve’s updated projections indicated a higher outlook for core PCE inflation… with Chair Jerome Powell acknowledging that rising oil prices will contribute to inflationary pressures,” he added.
In this environment, expectations of prolonged higher interest rates have supported bond yields, reducing the relative appeal of non-yielding assets such as gold and silver.
At the same time, a stronger US dollar has added pressure, making precious metals more expensive for global investors and weighing on demand.
Overall, the movement in metals reflects the combined impact of elevated energy prices, inflation concerns, and shifting expectations around interest rates.
