Gold and silver prices recorded sharp weekly losses as rising crude oil prices intensified inflation concerns and strengthened expectations that global interest rates could remain higher for longer. Gold declined 3.28% on a weekly basis, while silver dropped 7.83%, putting precious metals under pressure amid a broad sell-off.
The rising inflation concerns reinforced expectations that global interest rates will stay higher for longer, prompting a wave of selling across precious‑metals markets.
On Friday, MCX gold futures expiring December declined 0.81 per cent while MCX silver futures for December shed 1.75 per cent. Gold futures stood at Rs 1,42,150, while silver futures stood at Rs 1,96,100 per kg.
Gold and Silver Prices Drop Sharply on MCX
Gold saw its steepest weekly decline since June and slipped below the psychologically important $4,000 per ounce level for the first time since mid-July, analysts said.
The selloff in silver intensified over weakness in US technology stocks, particularly AI-linked companies, which triggered margin calls and forced investors to liquidate precious-metal holdings.
Crude Oil Rally Fuels Inflation and Interest-Rate Concerns
Meanwhile, crude oil surged to multi-month highs following renewed attacks on Saudi energy infrastructure and shipping routes, while the Indian rupee surrendered its early-week gains amid rising oil prices and renewed dollar demand.
Gold Demand in India Offers Some Support
However, lower prices encouraged physical gold purchases in India during the Dussehra festival, providing some underlying demand support, while Chinese jewellery demand remained subdued.
Market participants forecast that precious metals could remain under pressure if elevated energy prices reinforce inflation concerns and expectations of tighter monetary policy. However, physical demand and any moderation in bond yields could offer support following the recent correction, they said.
US Fed Decision and Inflation Data in Focus
Markets largely expect the US Fed to keep interest rates unchanged at the October 27–28 policy meeting, but expectations of another rate hike in December remain elevated, with traders pricing approximately a 78 per cent probability.
Investors are also awaiting the US Personal Consumption Expenditures report next week for additional guidance on inflation and future interest-rate decisions.
Gold Price Levels to Watch: COMEX and MCX
Immediate resistance for Comex Gold is placed at $4,070–$4,100 zone, while support lies at $3,970–$4,000 zone, analysts said.
For MCX Gold, immediate resistance is placed at Rs 1,43,000–Rs 1,43,700 zone, while the support lies at Rs 1,40,000–Rs 1,41,000, they added.
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