Mumbai’s commodity markets witnessed a sharp downturn in gold and silver prices on Monday, with both precious metals shedding nearly 2% amid a robust US dollar rally. Traders pointed to the strengthening dollar index and surging crude oil prices as key drivers behind the sell-off.
On the Multi Commodity Exchange (MCX), gold futures for June 2026 expiry traded 0.56% lower at ₹1,51,793 per 10 grams by 11:20 AM. The contract oscillated between a low of ₹1,51,457 and a high of ₹1,51,999 during early sessions, reflecting heightened volatility.
Silver futures, expiring in May 2026, faced steeper losses, declining 1.93% or ₹4,693 to ₹2,38,581 per kilogram. It touched a session low of ₹2,37,190 and a high of ₹2,39,068, underscoring the metal’s vulnerability to global cues.
The weakness mirrored international trends, where spot gold fell 0.84% to $4,747 per ounce, and silver plunged 2.33% to $74.70 per ounce. Analysts noted gold’s confinement within a narrow $4,700-$4,750 range on Comex, with limited upside potential. A break below $4,650 could trigger further slides toward $4,600-$4,570, while resistance looms at $4,750-$4,770.
A resurgent dollar index, up 0.36% at 98.8 against a basket of six major currencies, pressured prices by making dollar-denominated assets costlier for overseas buyers. This also weighed on the Indian rupee, which opened 55 paise weaker against the greenback.
Compounding the pressure, crude oil prices skyrocketed over 8%, breaching the $100 mark. This combination of a mighty dollar and expensive oil has investors wary, prompting widespread profit-booking in safe-haven assets like gold and silver.
Market participants now eye upcoming US economic data and Federal Reserve signals for clues on the dollar’s trajectory. For now, the precious metals sector remains under siege, with traders bracing for more turbulence ahead.