Gold Falls ₹3,898, Silver Drops ₹14,730 in Week as Dollar Strengthens

Gold and silver prices tumbled this week in India’s domestic markets, with gold falling ₹3,898 per 10 grams and silver dropping ₹14,730 per kilogram on the Multi Commodity Exchange. The decline marks a sharp reversal from January’s record highs, driven by a stronger US dollar, profit-taking by large investors, and selling pressure in gold-silver ETFs. Analysts expect continued volatility as US-Iran tensions and inflation data shape global sentiment.

Gold and silver both retreat sharply on MCX

On the MCX, gold futures for August delivery closed at ₹1,43,480 per 10 grams on Friday, down ₹3,898 or 2.65% from the previous week’s ₹1,47,378. Silver futures for September delivery fell to ₹2,22,680 per kilogram, a drop of ₹14,730 or 6.2% from ₹2,37,410 a week earlier. According to the India Bullion and Jewellers Association (IBJA), 10-gram 24-carat gold fell ₹2,976 to ₹1,43,000, while silver dropped ₹13,468 to ₹2,20,000 per kilogram in the domestic retail market.

Record highs in January now feel distant

Both metals have retreated significantly from their January 2026 peaks. Gold reached ₹2,02,000 per 10 grams on January 29, meaning prices have fallen ₹58,520 or 29% since that high. Silver peaked at ₹3,86,000 per kilogram on the same date and has since lost ₹1,66,000 or 43% of its value. The metals hit these record levels after rallying from year-end 2025 lows of ₹1,33,000 for gold and ₹2,30,000 for silver.

Strong dollar and profit-taking drive the selloff

Analysts point to three main drivers of this week’s decline. A stronger US dollar, signaled by the Federal Reserve’s recent guidance, typically pushes down gold and silver prices in international markets. Large investors and traders have also taken profits after the steep January rally, triggering sudden sharp losses. Additionally, heavy selling in gold and silver ETFs has added downward pressure as the appeal of safe-haven investments wanes.

US-Iran tensions and inflation data loom ahead

Geopolitical risk remains a wild card. The US and Iran exchanged airstrikes over the weekend as they contest control of the Strait of Hormuz, a critical global energy trade route. Oil prices rose 4% in response, with US crude futures climbing to $74.33 per barrel. Analysts at JM Financial and LKP Securities expect gold and silver to remain volatile next week as markets watch US-Iran developments, inflation reports from India, the European Union, and the United States, and signals from major central banks on interest rates. Any escalation could push oil higher and support safe-haven demand for precious metals.

Final Thoughts

Gold and silver face headwinds from a strong dollar and profit-taking, but geopolitical tensions and inflation uncertainty could support prices. Investors should watch central bank signals and US-Iran developments closely before making portfolio moves.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.