On Monday, MCX gold futures slid 2.07%, closing at ₹1.50 lakh per 10 grams, while silver tumbled 2.76% to ₹2.28 lakh per kilogram.
The fall mirrors global pricing: gold futures were down 2.37% at $4,183.18 an ounce, and silver slid 4.09% to $61.66 per ounce, according to MCX data.
Analysts point to a tightening monetary environment in the U.S. as the primary catalyst. Nirpendra Yadav, Senior Research Analyst at Bonanza, said the dip below $4,200 an ounce reflects rising Treasury yields and a stronger dollar, both of which weigh on non‑yielding assets like gold.
Geopolitical tensions add another layer of uncertainty. Vedika Narvekar of Anand Rathi warned that the Strait of Hormuz remains a flashpoint for oil prices, keeping inflation expectations elevated and Treasury yields near 5.20%, a backdrop that is difficult for gold to endure.
Technical levels are tight: on the global market, $4,110 is a key support and $4,300 a resistance; domestically, MCX gold could hold around ₹1.45 lakh, with resistance near ₹1.52 lakh, according to multiple analysts.
Looking ahead, traders will watch U.S. inflation, employment data, Treasury yields, and the dollar. The rupee’s strength or weakness will also influence domestic bullion pricing, especially as the festive season approaches and demand from jewelers and traders remains cautious.