Gold, silver prices fall up to 4% on MCX as dollar strengthens, crude surges
Synopsis
Gold and silver suffered one of their sharpest single-session falls on MCX, with silver shedding over 4 per cent as a strengthening dollar and sticky US inflation expectations pushed traders out of precious metals — even as geopolitical risk in West Asia remained elevated. The divergence between safe-haven demand and rate-driven dollar strength is the central tension now defining commodity markets.
Key Takeaways
Gold futures (June 5) fell up to 1.52% to an intraday low of ₹1,59,500 on MCX on 15 May .
Silver futures (July 3) plunged up to 4.12% or ₹12,000 to ₹2,79,102 — the steeper of the two declines.
COMEX gold dropped 1.54% to $4,615/oz ; COMEX silver fell 4.47% to $81.49/oz .
Rising US inflation has strengthened expectations the US Federal Reserve will keep rates elevated, boosting the dollar and pressuring precious metals.
Brent crude rose 1.57% to $107.38/barrel ; WTI gained 1.72% to $102.92/barrel , amplifying inflationary concerns.
Geopolitical tensions in West Asia and Strait of Hormuz disruptions continue, though they failed to provide a safe-haven floor on Friday.
Gold and silver prices tumbled sharply on the Multi Commodity Exchange (MCX) on Friday, 15 May, with both precious metals shedding up to 4 per cent in domestic trade as a stronger US dollar and rising crude oil prices weighed on sentiment. The selloff mirrored a simultaneous decline in international commodity markets, underscoring the global nature of the pressure on precious metals.
MCX Price Movement
Gold futures for June 5 dropped as much as 1.52 per cent, or ₹2,478, to touch an intraday low of ₹1,59,500 as of 10:45 am IST. At last count, the yellow metal was trading at ₹1,59,792, down 1.34 per cent or ₹2,186 from the previous close. It had opened the session at ₹1,60,790 and touched an intraday high of ₹1,60,992.
Silver futures for July 3 bore heavier selling pressure, plunging 4.12 per cent or ₹12,000 to ₹2,79,102 at the day's low. The white metal was last trading at ₹2,80,091, down 3.78 per cent or ₹11,011. It opened at ₹2,80,000 and recorded an intraday high of ₹2,83,219, itself a decline of 2.7 per cent.
Global Markets Follow Suit
The weakness was equally pronounced in international markets. COMEX gold was trading 1.54 per cent lower at $4,615 per ounce, while COMEX silver fell 4.47 per cent to $81.49 per ounce — a steeper drop than its domestic counterpart, reflecting the intensity of global selling.
Notably, this broad-based retreat in precious metals comes even as geopolitical tensions in West Asia and disruptions to energy shipments through the Strait of Hormuz persist — factors that would ordinarily provide a safe-haven floor for gold.
What Is Driving the Selloff
According to commodity market experts, rising US inflation has reinforced expectations that the US Federal Reserve may keep interest rates elevated for longer. Higher-for-longer rates increase the opportunity cost of holding non-yielding assets like gold and silver, making the dollar comparatively more attractive.
Experts further noted that while silver continued to draw some support from expectations of robust industrial demand — particularly from the electronics and solar energy sectors — broader weakness in the metals complex overwhelmed those tailwinds on the day.
Crude Oil Moves Higher
Adding to the complex macro backdrop, crude oil prices rose more than 1 per cent on Friday. International benchmark Brent crude gained 1.57 per cent to $107.38 per barrel, while US West Texas Intermediate (WTI) crude advanced 1.72 per cent to $102.92 per barrel. Rising crude typically amplifies inflationary pressures, which in turn supports the dollar — a dynamic that compounds the headwind for gold and silver.
Traders and investors will be watching upcoming US Federal Reserve communications and any fresh developments in West Asia for directional cues on precious metals in the sessions ahead.
Point of View
West Asia tensions and energy supply disruptions would be enough to keep gold bid — but when the dollar is strengthening on inflation expectations, the safe-haven calculus breaks down. Silver's sharper fall is telling: industrial demand optimism from solar and electronics is not enough to offset macro headwinds when the metals complex sells off in unison. The real watch now is whether the Fed's eventual pivot, whenever it comes, triggers a violent reversal in both metals given how aggressively positioning has shifted.
NationPress
6 Jul 2026
Frequently Asked Questions
Why did gold and silver prices fall on 15 May?
Gold and silver fell sharply on 15 May because a stronger US dollar, driven by expectations that the US Federal Reserve will keep interest rates elevated amid rising inflation, reduced the appeal of non-yielding precious metals. Disruptions in West Asia and higher crude oil prices added to inflationary pressures, further supporting the dollar.
How much did gold fall on MCX on 15 May?
Gold futures for June 5 dropped up to 1.52 per cent, or ₹2,478, to an intraday low of ₹1,59,500 on MCX. At last count, gold was trading at ₹1,59,792, down 1.34 per cent from the previous close.
How much did silver fall on MCX on 15 May?
Silver futures for July 3 plunged up to 4.12 per cent, or ₹12,000, to ₹2,79,102 on MCX. Silver was last trading at ₹2,80,091, down 3.78 per cent or ₹11,011 from the previous close.
What happened to gold and silver prices in international markets?
COMEX gold fell 1.54 per cent to $4,615 per ounce, while COMEX silver declined 4.47 per cent to $81.49 per ounce — a sharper drop than the domestic market, reflecting intense global selling pressure.
Why did silver fall more than gold?
Silver fell more steeply than gold because, in addition to macro headwinds from a stronger dollar and rate concerns, it faced broader weakness across the metals complex. While industrial demand from electronics and solar energy sectors provided some support, it was insufficient to offset the day's selling pressure.
