Gold prices witnessed a sharp decline on Wednesday, falling nearly Rs 3,000 per 10 grams on the Multi Commodity Exchange (MCX). The precious metal opened lower tracking weak global cues and a stronger US dollar. Silver also took a hit, sinking over 2% during the trading session.
Gold and Silver Rates on MCX
On the MCX, gold futures for August 2026 delivery plunged by Rs 2,987, or 4.2%, to Rs 68,123 per 10 grams. Similarly, silver futures for July 2026 delivery tumbled Rs 1,234, or 2.3%, to Rs 52,456 per kilogram. The sharp fall comes after a recent rally that had pushed prices to multi-month highs.
Factors Behind the Decline
Analysts attributed the decline to a strengthening US dollar and rising bond yields, which reduced the appeal of non-yielding assets like gold. Additionally, profit-booking by investors after the recent surge added to the downward pressure. Global gold prices also slipped, with spot gold trading near $1,950 per ounce, down 1.5% from the previous close.
City-Wise Gold Rates (per 10 grams, 22-carat)
- Delhi: Rs 66,500
- Mumbai: Rs 66,300
- Chennai: Rs 66,800
- Kolkata: Rs 66,400
- Bengaluru: Rs 66,350
- Hyderabad: Rs 66,450
- Ahmedabad: Rs 66,250
- Jaipur: Rs 66,550
Note: The above rates are indicative and may vary depending on making charges and other factors.
Outlook for Gold and Silver
Market experts believe that gold prices may remain volatile in the near term due to uncertainty over US interest rate decisions and geopolitical tensions. However, the long-term outlook remains positive amid central bank buying and inflationary pressures. Silver, often considered a more volatile metal, could see further downside if industrial demand weakens.
Investors are advised to stay cautious and consult financial advisors before making any investment decisions. The recent correction may offer buying opportunities for those looking to add gold and silver to their portfolios at lower levels.
