On the Multi Commodity Exchange (MCX), gold futures for April delivery declined by ₹2,260, or 1.62%, to ₹1.37 lakh per 10 grams, marking the fifth consecutive session of losses.
The yellow metal has seen sharp swings this week; in the previous session, it plunged over 10% intraday before paring some losses by the close.
Silver followed a steeper decline. Prices fell 3.67% to ₹2.16 lakh per kg, and remain significantly below their recent highs, reflecting broader pressure across precious metals.
Global pressure, mixed signals
In international markets, gold futures slipped toward the $4,300 per ounce mark, as investors reacted to conflicting developments around tensions in West Asia. While temporary pauses in military escalation offered brief support, renewed hostilities and uncertainty over diplomatic outcomes continued to cloud sentiment.
Analysts said the evolving situation has kept energy prices elevated, raising concerns over inflation. This, in turn, has strengthened expectations that central banks, particularly the US Federal Reserve, may maintain higher interest rates for longer, reducing the appeal of non-yielding assets like gold.
A firm dollar index, hovering above the 93.50 level, also added pressure on bullion, even as crude oil prices showed slight easing.
Inflation, rates reshape gold outlook
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold has seen a significant correction both globally and domestically.
The decline reflects rising inflation risks and a shift in market expectations toward a prolonged higher interest rate cycle.
“Despite gold’s safe-haven appeal, the current macro environment—characterised by a strong dollar and elevated bond yields—is weighing on prices,” he said.
Technical levels and near-term outlook
Market participants are closely watching key technical levels. Analysts suggest that gold may test lower levels in the near term if global uncertainty persists and monetary policy expectations remain unchanged.
At the same time, recent rebounds from lower levels indicate some support emerging due to short-covering and oversold conditions.
According to bullion market experts, levels around ₹1.30 lakh for gold and ₹2 lakh for silver are acting as near-term support zones.
However, analysts caution that volatility is likely to remain elevated. Any meaningful de-escalation in geopolitical tensions or clarity on interest rate cuts could trigger a recovery in prices. Conversely, sustained inflationary pressures and continued strength in the dollar may keep bullion under pressure.
Investors are now awaiting key US macroeconomic data, including employment and business activity indicators, which could provide further direction to global markets and influence the trajectory of precious metals.
Industry experts said ongoing volatility in global bullion markets is shaping both pricing and consumer behavior in India.
Buying patterms
Vismay Soni, Managing Director of SMR Jewels, noted that buying patterns are value-driven.
“Customers are spending more time comparing designs across showrooms and evaluating both price and utility. Bridal and wedding-led demand for heavier jewellery continues, but everyday purchases are shifting toward lightweight, versatile pieces,” he said.