Mumbai, April 24: Gold and silver prices tumbled by nearly 1 per cent on the Multi Commodity Exchange (MCX) during early trade on Friday, April 24, as a combination of a strengthening US dollar, rising bond yields, and escalating Middle East geopolitical tensions triggered broad-based selling in precious metals. The decline mirrored pressure seen in global commodity markets, with COMEX gold and COMEX silver also retreating sharply.

MCX Gold Prices: Intraday Movement

Gold futures for the June 5 contract opened at Rs 1,51,167 per 10 grams, down Rs 594 or 0.39 per cent from the previous close of Rs 1,51,761. The yellow metal extended its losses during the session, touching an intraday low of Rs 1,50,750, a decline of Rs 1,011 or 0.66 per cent.

At last trade, gold was quoted at Rs 1,51,449, down Rs 312 or 0.21 per cent. The session's intraday high was recorded at Rs 1,51,457, indicating limited buying interest at elevated levels.

Silver Prices Under Pressure on MCX

Silver futures for the May 5 contract dropped as much as 0.95 per cent or Rs 2,313 to touch an intraday low of Rs 2,39,200. The white metal subsequently pared some losses and was last seen trading at Rs 2,41,345, down Rs 168 or 0.07 per cent.

The intraday high for silver stood at Rs 2,41,382, a marginal decline of 0.05 per cent or Rs 131 from the previous close, reflecting volatile but predominantly bearish sentiment.

Global Markets: COMEX Gold and Silver Retreat

In international markets, COMEX gold fell nearly 1 per cent to trade at $4,684 per ounce, while COMEX silver slipped approximately 1 per cent to $74.81 per ounce. The synchronized decline across global exchanges underscores the macro-level headwinds facing precious metals.

Commodity analysts attribute the selling pressure to a combination of a stronger US dollar index, elevated US Treasury bond yields, and ongoing uncertainty stemming from Middle East conflicts. A firmer dollar makes dollar-denominated commodities like gold and silver more expensive for foreign buyers, dampening demand.

Crude Oil Above $100, Inflation Fears Add to Headwinds

Brent crude oil surged past $100 per barrel, trading more than 2 per cent higher on the day. While rising crude typically signals inflationary pressure — which historically supports gold as a hedge — analysts note that in the current environment, fears of aggressive US Federal Reserve rate hikes to combat inflation are outweighing gold's safe-haven appeal.

This dynamic reflects a key contradiction: inflation is rising, yet gold is falling. The reason lies in the opportunity cost of holding gold — as bond yields climb, interest-bearing assets become relatively more attractive, pulling capital away from non-yielding metals.

Equity Markets and Broader Market Context

Indian equity benchmarks Sensex and Nifty 50 also traded up to 1 per cent lower in early trade on Friday, reflecting a broader risk-off sentiment across asset classes. The simultaneous decline in equities and precious metals points to a liquidity-driven selloff, where investors may be raising cash amid global uncertainty.

This comes amid a broader pattern seen since early 2024, where gold has repeatedly tested record highs only to face sharp corrections driven by Federal Reserve policy signals and dollar strength. Investors and traders tracking MCX gold and silver rates today should watch the $4,650 support level on COMEX gold as a critical near-term threshold. Any escalation in Middle East tensions or a dovish pivot from the US Fed could swiftly reverse the current downtrend.