MCX gold crossed the ₹1.59 lakh mark per 10 grams during trade. In contrast, MCX silver slipped sharply and hit an intraday low of ₹2.75 per kilogram.
The domestic movement came even as global bullion prices remained largely subdued. COMEX gold traded near $4,561 per ounce, while silver hovered around $77.68 per ounce in Asian trade.
Analysts said precious metals remained sensitive to developments in the US economy and the West Asia. A weaker dollar supported bullion prices by making gold and silver cheaper for holders of other currencies, while falling crude oil prices helped ease fears of another inflation spike.
According to Gaurav Garg, research analyst at Lemonn, the recent dip in global gold and silver prices can be attributed to inflation concerns linked to crude oil prices and the stronger dollar, which has made precious metals expensive for investors using other currencies.
Crude oil prices, however, fell sharply after reports suggested easing tensions in the West Asia. US President Donald Trump said he had paused a planned attack on Iran to allow negotiations to continue, triggering a decline in oil prices and improving overall market sentiment.
Market participants are also closely monitoring the US Federal Reserve’s policy trajectory after Kevin Warsh was confirmed as the new Fed Chair. Persistent inflation concerns have reduced expectations of rate cuts in 2026, keeping volatility elevated across commodity markets.
Meanwhile, domestic bullion demand trends in India continue to evolve. Piyush Jhunjhunwala, Founder and CEO of Stockify, said gold is being viewed as a financial protection asset rather than only a traditional purchase linked to weddings or festivals.
“With global inflation worries, geopolitical tensions and volatile equity markets, investors are treating gold as a hedge and using price corrections as accumulation opportunities,” Jhunjhunwala said.
He added that younger investors are opting for digital gold, gold ETFs and SIP-based investing routes, signalling a broader shift toward systematic exposure to bullion assets.
