Gold, Silver Prices Slide Sharply On MCX Amid Dollar Strength

Gold prices fell sharply on Wednesday, declining by Rs 1,300 per 10 grammes to trade below the Rs 1,39,000 mark on the Multi Commodity Exchange. Silver prices experienced even steeper losses, slumping by Rs 2,800 per kilogramme as both metals came under sustained selling pressure.

The decline in precious metal valuations reflects the ongoing strength of the US dollar, which has appreciated against major currencies and reduced the appeal of bullion among international investors. A stronger greenback makes gold and silver more expensive for buyers using other currencies, typically dampening global demand for the commodities.

Market participants attributed the weakness to growing expectations that the US Federal Reserve may maintain its hawkish stance with further interest rate increases in the coming months. Higher rates typically support the dollar while making non-yielding assets like precious metals less attractive to investors seeking better returns elsewhere.

The downward movement in MCX-traded metals signals sustained headwinds for Indian buyers and jewellers, who have seen costs moderate in recent sessions. Analysts suggest precious metal prices may remain under pressure unless there is a significant shift in global monetary policy or currency markets.