Gold, silver prices drop up to 2% on stronger dollar, Fed rate fears
Synopsis
Gold and silver took a simultaneous hit on 13 July as the dollar firmed and Fed rate-hike fears mounted — even as US-Iran military strikes escalated. The twist: the very geopolitical tensions that should have lifted gold as a safe haven are instead stoking inflation fears, which raise the odds of higher US rates and crush bullion demand. A classic commodity catch-22.
Key Takeaways
MCX gold fell as much as 1.33 per cent to an intraday low of ₹1,41,557 on 13 July .
MCX silver slid as much as 2.41 per cent to an intraday low of ₹2,17,277 .
COMEX gold dropped 1.27 per cent to $4,061 per ounce ; COMEX silver fell 0.58 per cent to $58 per ounce .
The Dollar Index rose to 100.90 , reducing the appeal of non-yielding assets like gold.
US military strikes on Iran and retaliatory action by Tehran lifted crude oil, reviving energy-driven inflation fears.
Investors are watching upcoming US Fed commentary and US-Iran conflict developments for the next directional cue.
Gold and silver prices on the Multi Commodity Exchange (MCX) fell sharply on Monday, 13 July, sliding by as much as 2 per cent as a firmer US dollar and rising expectations of elevated US interest rates overwhelmed safe-haven buying, even as tensions between the US and Iran intensified. The dual pressure of a strong greenback and hawkish Federal Reserve signals proved too heavy for precious metals to absorb.
MCX Gold and Silver Performance
MCX gold futures (August 5) opened at ₹1,42,633, down ₹845 or 0.58 per cent from the previous close of ₹1,43,478. The yellow metal slid as far as 1.33 per cent, touching an intraday low of ₹1,41,557 around 10 am IST. At last count, it was trading at ₹1,42,100, down ₹1,378 or 0.96 per cent.
MCX silver futures (September 4) fell as much as 2.41 per cent or ₹5,387 to an intraday low of ₹2,17,277. The white metal was last seen at ₹2,18,665, down ₹3,999 or 1.80 per cent, after recording an intraday high of ₹2,18,844.
Global Markets Mirror the Decline
Weakness was mirrored in international markets. COMEX gold fell 1.27 per cent to $4,061 per ounce, while COMEX silver declined 0.58 per cent to $58 per ounce. The Dollar Index — which tracks the greenback against a basket of six major currencies including the euro, Japanese yen, British pound sterling, Canadian dollar, Swedish krona, and Swiss franc — rose to 100.90, reinforcing pressure on dollar-denominated commodities.
What Is Driving the Pressure
According to market experts, the primary drag on gold came from a combination of a stronger dollar and renewed geopolitical tensions in the Middle East. Fresh US military strikes on Iran and retaliatory actions by Tehran — including reported targeting of US military bases in Kuwait, Bahrain, and Jordan — pushed crude oil prices higher, reviving fears of energy-driven inflation. Elevated US Treasury yields further reduced the appeal of non-yielding assets such as gold, experts noted.
Notably, the dynamic underscores a recurring tension in commodity markets: geopolitical flare-ups that would ordinarily boost gold as a safe haven are being offset by the inflation implications of those same events, which in turn raise the probability of higher US rates — a net negative for bullion.
What Investors Are Watching Next
Market participants are closely tracking developments in the US-Iran conflict, upcoming US economic data, and commentary from the US Federal Reserve for direction on interest rates and near-term gold price movement, according to experts. Any escalation in the Middle East that pushes oil materially higher could keep the inflation-rate-hike feedback loop in play, sustaining headwinds for precious metals in the sessions ahead.
Point of View
Which means the traditional safe-haven bid for gold is being cancelled out by the rate-hike implications of the same conflict. Elevated Treasury yields and a firm dollar are doing the heavy lifting on the downside. Until the Fed signals a credible pause, precious metals face a structural ceiling — and any further Middle East escalation that lifts oil will only reinforce that ceiling rather than break it.
NationPress
13 Jul 2026
Frequently Asked Questions
Why did gold and silver prices fall on 13 July despite US-Iran tensions?
Gold and silver fell because a stronger US dollar and rising expectations of higher US interest rates outweighed safe-haven demand. US-Iran military tensions pushed crude oil higher, stoking inflation fears — which in turn raised the probability of further Fed rate hikes, making non-yielding assets like gold less attractive.
How much did MCX gold fall on 13 July?
MCX gold futures fell as much as 1.33 per cent or ₹1,921 to an intraday low of ₹1,41,557. At last count, it was trading at ₹1,42,100, down ₹1,378 or 0.96 per cent from the previous close of ₹1,43,478.
What was the impact on silver prices on MCX?
MCX silver futures declined as much as 2.41 per cent or ₹5,387 to an intraday low of ₹2,17,277. The metal was last trading at ₹2,18,665, down ₹3,999 or 1.80 per cent on the day.
What is the Dollar Index and why does it matter for gold?
The Dollar Index measures the value of the US dollar against a basket of six major currencies — the euro, Japanese yen, British pound sterling, Canadian dollar, Swedish krona, and Swiss franc. It rose to 100.90 on Monday. Since gold is priced in dollars globally, a stronger dollar makes it more expensive for holders of other currencies, reducing demand and pushing prices lower.
What should gold investors watch in the coming sessions?
Investors are tracking developments in the US-Iran conflict, upcoming US economic data, and US Federal Reserve commentary for interest rate signals. Any further escalation that lifts oil prices could sustain inflation fears and keep gold under pressure, while a dovish Fed signal could revive safe-haven buying.
