Politics · India Bureau
Gold, silver tumble on US inflation concerns, rate-cut outlook dims
Precious metals prices have declined sharply as persistent inflation pressures in the United States dim expectations of near-term interest rate cuts. Gold and silver futures on the Multi Commodity Exchange fell to their lowest levels in recent sessions.
LSN India ·
Gold futures on the Multi Commodity Exchange (MCX) slipped to approximately ₹1.41 lakh per 10 grams, while silver futures declined to around ₹1.86 lakh per kilogram, reflecting broader weakness in the precious metals complex.
The downward pressure stems from mounting concerns over US inflation persistence, which has bolstered expectations that the Federal Reserve will maintain its hawkish monetary stance for longer than previously anticipated. Tighter global financial conditions typically weigh on non-yielding assets like gold and silver, as higher interest rates increase the opportunity cost of holding such metals.
Investors have begun scaling back bets on interest rate cuts in the coming months, a shift that undermines one of the key support factors for precious metals. A stronger US dollar, which typically accompanies higher rate expectations, has also made gold and silver more expensive for buyers using other currencies.
The selloff in precious metals reflects a broader recalibration of market expectations regarding central bank policy trajectories. Market participants remain attuned to upcoming US economic data and Federal Reserve communications that could provide fresh clarity on the inflation outlook and monetary policy direction.