Gold and silver prices fell in India on Wednesday as the dollar rallied, pressuring precious metals. MCX gold dropped 0.94% to ₹141,600. Silver slid 1.86%.
Alpha Score of 49 reflects weak overall profile with strong momentum, poor value, weak quality, weak sentiment.
Gold and silver prices eased in Indian markets Wednesday, tracking a global selloff in precious metals as the dollar strengthened. MCX gold futures for August delivery closed at ₹141,600 per 10 grams, down 0.94% from the previous session. Silver futures slid 1.86% to ₹224,520 per kg.
In the retail market, 24-karat gold in New Delhi traded at ₹141,100 per 10 grams, while Mumbai quoted ₹141,340 and Kolkata ₹141,330. Silver 999 fine ranged from ₹223,730 per kg in Delhi to ₹224,690 in Chennai.
The dollar's rally to a 40-year high against the yen – the yen touched 162.28 per dollar, data from LSEG showed – weighed on gold prices globally. A stronger dollar makes bullion more expensive for holders of other currencies, dampening demand. The dollar index, which measures the greenback against a basket of major currencies, has risen roughly 5% over the past month.
Crude oil's slide added to the bearish tone for commodities. Brent crude for August delivery settled at $72.92 per barrel on Tuesday, after posting a 21% decline in June – its largest monthly loss since March 2020. The drop came as traders monitored the potential for revived nuclear talks between the US and Iran in Qatar. Iran has exported more than 40 million barrels of crude since the US removed its naval blockade of Iranian ports, Parliament Speaker Mohammad Bagher Ghalibaf said Tuesday, according to reports. Lower oil prices reduce the immediate inflation-hedge appeal of gold.
City-level price discrepancies tell a story of local demand patterns. Kolkata's 24-karat rate of ₹141,330 sits ₹600 below Chennai's ₹141,930, reflecting the southern city's typically higher consumption during the wedding season. Mumbai, the hub for bullion imports, quoted ₹141,340 – a narrow ₹240 premium over Delhi, suggesting balanced regional inventory.
The MCX August gold contract settled within striking distance of the ₹140,000 support level last tested in late May. A breach below that could accelerate selling, traders said, with the next major floor around ₹138,000. Silver's ₹224,520 settlement leaves room for a run toward ₹220,000 before the July expiry.
For traders, the combination of a surging dollar and collapsing crude creates a headwind for precious metals that is hard to offset without a new catalyst. The next data point to watch is the US ISM manufacturing index due Thursday, which could either reinforce the dollar's strength or give gold a reprieve if it misses expectations.
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