Gold drops 3.28%, silver plunges 7.83% on weekly basis amid crude surge
Synopsis
Gold just posted its steepest weekly fall since June, crashing below $4,000 per ounce for the first time since mid-July, while silver shed nearly 8% in a single week. The culprit: a crude oil surge that is re-lighting inflation fears and pushing traders to price in a 78% chance of a December Fed rate hike — a double blow for non-yielding precious metals.
Key Takeaways
Gold fell 3.28% on a weekly basis — its steepest decline since June — slipping below $4,000 per ounce for the first time since mid-July .
Silver tumbled 7.83% on the week, compounded by margin calls from weakness in US AI-linked tech stocks .
MCX gold futures (December) stood at ₹1,42,150 ; MCX silver futures (December) at ₹1,96,100 per kg on Friday.
Crude oil's rally to multi-month highs — triggered by attacks on Saudi energy infrastructure — stoked inflation fears and reinforced higher-for-longer rate expectations.
Traders are pricing approximately a 78% probability of a US Fed rate hike in December ; the 27–28 October meeting is expected to hold rates steady.
Physical gold buying in India during Dussehra offered some demand support; Chinese jewellery demand remained subdued.
Gold prices slid 3.28% on a weekly basis while silver tumbled 7.83% in the week ending 24 October 2026, as a sharp rally in crude oil prices stoked fresh inflation fears and reinforced expectations that global interest rates will remain elevated for longer. The twin selloff marks gold's steepest weekly decline since June.
Key Price Levels
On Friday, MCX gold futures for December expiry declined 0.81% to stand at ₹1,42,150, while MCX silver futures for December shed 1.75% to trade at ₹1,96,100 per kg. On international markets, gold slipped below the psychologically important $4,000 per ounce level for the first time since mid-July, according to analysts.
What Triggered the Selloff
The primary catalyst was a surge in crude oil prices to multi-month highs, driven by renewed attacks on Saudi energy infrastructure and key shipping routes. Rising energy costs amplified inflation concerns, prompting a broad wave of selling across precious-metals markets. The Indian rupee also gave up its early-week gains as oil-driven dollar demand intensified.
Silver faced additional pressure from weakness in US technology stocks, particularly AI-linked companies, which triggered margin calls and forced investors to liquidate precious-metal positions. Notably, this compounding of macro and sector-specific stress deepened silver's losses well beyond gold's.
Physical Demand Offers a Floor
The steep price correction did stimulate some buying. Lower gold prices encouraged physical purchases in India during the Dussehra festival, providing a measure of underlying demand support. However, Chinese jewellery demand remained subdued, limiting any meaningful recovery from that front.
Fed Policy and What Markets Are Pricing
Markets largely expect the US Federal Reserve to hold interest rates unchanged at its 27–28 October policy meeting. However, expectations of an additional rate hike in December remain elevated, with traders pricing in approximately a 78% probability of such a move. Investors are also awaiting the US Personal Consumption Expenditures (PCE) report next week, which will provide further guidance on inflation and the Fed's rate trajectory.
Technical Outlook for Gold and Silver
For Comex Gold, immediate resistance is placed in the $4,070–$4,100 zone, while support lies at $3,970–$4,000, according to analysts. On the domestic front, MCX Gold faces resistance at ₹1,43,000–₹1,43,700, with support at ₹1,40,000–₹1,41,000. Market participants caution that precious metals could remain under pressure if elevated energy prices continue to reinforce tighter monetary policy expectations, though any moderation in bond yields or a pickup in physical demand could provide support after the recent correction.
Point of View
Which raises the opportunity cost of holding non-yielding assets. Silver's sharper fall exposes how much of its recent gains were riding on the AI-hardware investment story; when that narrative wobbles, silver is the first to feel it. The Dussehra physical-demand cushion is seasonal and short-lived. What the market really needs is either a dovish surprise from the Fed or a meaningful pullback in crude — neither of which looks imminent. Until the PCE data lands next week, volatility in both metals is likely to remain elevated.
NationPress
24 Oct 2026
Frequently Asked Questions
Why did gold and silver prices fall sharply this week?
Gold fell 3.28% and silver dropped 7.83% on a weekly basis as surging crude oil prices fuelled inflation fears, reinforcing expectations that global interest rates will stay higher for longer. This prompted broad selling across precious-metals markets.
What are the current MCX gold and silver futures prices?
As of Friday, 24 October 2026, MCX gold futures for December expiry stood at ₹1,42,150, while MCX silver futures for December were at ₹1,96,100 per kg. Both declined on the day and on the week.
Why did gold fall below $4,000 per ounce?
Gold slipped below the psychologically significant $4,000 per ounce level for the first time since mid-July, as inflation concerns driven by rising crude oil prices and expectations of a US Fed rate hike in December weighed on sentiment. It marked gold's steepest weekly decline since June.
What is the US Fed expected to do at its October 27–28 meeting?
Markets largely expect the US Federal Reserve to hold interest rates unchanged at its 27–28 October policy meeting. However, traders are pricing approximately a 78% probability of an additional rate hike in December, keeping pressure on non-yielding assets like gold and silver.
What are the key technical levels to watch for gold?
For Comex Gold, immediate resistance is at $4,070–$4,100, with support at $3,970–$4,000. On MCX, gold faces resistance at ₹1,43,000–₹1,43,700 and support at ₹1,40,000–₹1,41,000, according to analysts.
