Stories
Gold Plummets Over ₹3,000, Silver Down ₹6,477 on MCX: What's Driving the Sell-Off?
- •Gold and silver prices saw a sharp decline on MCX, with gold falling over 2% and silver nearly 3% amid weaker spot demand and a broader sell-off.
- •The decline is attributed to rising inflation concerns and expectations of a tighter monetary stance from the US Federal Reserve, which weighs on non-yielding assets like gold.
- •Globally, gold futures were down 2.37% at $4,183.18 an ounce, while silver traded 4.09% lower at $61.66 an ounce.
- •Analysts point to higher oil prices, rising US Treasury yields, and a stronger dollar as key factors pushing gold prices down.
- •Investors are advised to monitor US inflation and employment data, the US dollar, Treasury yields, oil prices, and the geopolitical situation for future market direction.
Key Questions Answered
Gold and silver prices fell sharply on September 28, 2026, due to weaker spot demand, a broader sell-off in precious metals, rising inflation concerns, and expectations that the US Federal Reserve may maintain a tighter monetary stance. Higher oil prices, a stronger US dollar, and rising Treasury yields also added downward pressure on non-yielding assets.
Analyst Ashish Rajodiya identified MCX gold support levels at ₹1.48 lakh and ₹1.46 lakh per 10 grams, with resistance levels at ₹1.52 lakh and ₹1.55 lakh per 10 grams. Additionally, Vedika Narvekar noted that domestic investors should watch for the next important support for MCX gold around ₹1.45 lakh per 10 grams.
Continuing uncertainty around the Strait of Hormuz is keeping oil prices elevated, which in turn fuels inflation concerns and pushes US Treasury yields and the US dollar higher. This macro environment creates a difficult backdrop for gold and silver, keeping them vulnerable unless the geopolitical situation clarifies or bond yields cool off.
