Gold, Silver Prices Dip 2.1%, 1.3% on MCX as Oil Rises

Gold futures dipped ₹1,230, or 0.86%, to ₹1.42 lakh per 10 grams, while silver fell ₹4,191, 2.1%, to ₹1.95 lakh per kilogram on the Multi Commodity Exchange (MCX) on Friday. Turnover hovered at 1,670 and 5,856 lots respectively, underscoring a modest liquidity rally amid the price fall.

Gaurav Garg, Head of Research at Lemonn, linked the slide to climbing crude oil prices that have stoked inflation fears and heightened expectations of a prolonged Fed rate stance. “Higher rates diminish the appeal of non‑interest‑bearing assets like gold and silver,” Garg said, citing the 2.1% drop in silver as a clear sign of the tug‑of‑war between commodity demand and monetary policy.

On the domestic front, Darshan Desai, CEO of Aspect Bullion & Refinery, cautioned that while festive and wedding spending could buoy bullion demand, a weaker rupee could inflate import costs, keeping local prices resilient even as global prices dip. Desai added that the dollar’s recent gains and lingering geopolitical tensions over Saudi energy infrastructure add layers of uncertainty to the metal market.

Looking ahead, analysts focus on the Fed’s October 27‑28 meeting, where rate signals could either reinforce the current downward pressure or inject a degree of confidence. Traders are also monitoring potential West Asia supply disruptions, the rupee‑dollar exchange rate, and the timing of holiday‑season demand spikes to gauge short‑term volatility and long‑term value retention in precious metals.