On MCX, the August gold futures contract (05 Aug 2026) was trading at ₹1.45 lakh per 10 grams, down 0.44%. The September silver futures contract (04 Sep 2026) was quoted at ₹2.25 lakh per kg, lower by 0.50%.
The fall comes a day after gold and silver witnessed a strong recovery.
In the domestic spot market, gold prices had jumped ₹1,900 to a two-week high of ₹1.49 lakh per 10 grams on Wednesday (July 22), while silver surged ₹8,500 to ₹2.30 lakh per kg, according to the All India Sarafa Association.
Why are gold and silver prices falling today?
The decline in bullion prices is largely due to profit booking after the sharp gains seen in the previous sessions. Globally, gold prices also eased from their two-week highs as traders turned cautious ahead of the US Federal Reserve meeting next week.
Rising crude oil prices amid renewed tensions in the West Asia have added to inflation concerns. Higher energy prices could influence the Federal Reserve’s rate outlook, keeping investors focused on whether interest rates may remain elevated for longer.
Higher interest rates typically put pressure on gold as the precious metal does not generate regular income compared with interest-bearing assets.
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Despite the correction, gold continues to find support from geopolitical uncertainty. Escalating tensions in West Asia have encouraged investors to maintain exposure to safe-haven assets.
Silver has also benefited from the broader strength in precious metals, although the metal has seen sharper volatility due to its industrial demand component.
Fed meeting remains the next major trigger
Market participants are now watching the Federal Reserve’s policy meeting scheduled next week. While the central bank is widely expected to keep rates unchanged, investors will look for signals on the future path of monetary policy.
The Fed’s guidance will be important for bullion markets as expectations around rate cuts or further tightening could influence the dollar and bond yields.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said gold prices have been supported by renewed buying interest, rupee weakness and safe-haven demand amid geopolitical concerns.
He said investors are reassessing risks after the recent correction in gold prices, while the Fed policy decision on July 29 remains the key event for the bullion market.
Trivedi expects MCX gold to remain in the ₹1.42 lakh–₹1.46 lakh per 10 grams range in the near term.
Aamir Makda, Commodity & Currency Analyst, Technical Research at Choice Broking, said COMEX gold pulled back from the recent high near $4,166 per ounce as oil prices climbed and traders shifted focus towards the Fed meeting.
For MCX gold, he highlighted support around the 20-day exponential moving average (20-DEMA), while the upside resistance remains near recent highs.
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