Gold, silver volatile on MCX as West Asia tensions clash with rising US yields
Synopsis
Gold and silver are caught in a tug-of-war on MCX — West Asia tensions are pulling prices up via safe-haven demand, while surging US Treasury yields and a stronger dollar are dragging them down. Silver's intraday swing of over 3% tells the real story: this is not a calm market, and the next Fed signal or geopolitical development could break the deadlock decisively.
Key Takeaways
MCX gold futures traded at ₹1,58,697 per 10 grams on 18 May , with an intraday range of ₹1,57,547 to ₹1,58,884 .
MCX silver futures swung from a low of ₹2,64,949 to a high of ₹2,74,145 per kg, reflecting intraday volatility of over 3% .
Rising US Treasury yields and a stronger US dollar , driven by hotter-than-expected US inflation data, are suppressing precious metal prices globally.
UBS lowered its full-year silver investment demand forecast and projected a narrower global supply deficit, adding to silver's downside pressure.
COMEX gold fell 0.39% to $4,543 per ounce ; COMEX silver dropped 2.28% to $75.778 per ounce .
Brent crude surged 2.37% to $111.86 per barrel after a reported attack on a nuclear facility in the UAE .
Gold and silver prices swung sharply on the Multi Commodity Exchange (MCX) on Monday, 18 May, caught between two competing forces: escalating geopolitical tensions in West Asia — which typically fuel safe-haven buying — and a surge in US Treasury yields that weighed on non-yielding metals globally.
MCX Gold and Silver Levels
Gold futures (June 5) were trading at ₹1,58,697 per 10 grams around 11 am IST, up ₹150 or 0.09% on the day. The yellow metal touched an intraday high of ₹1,58,884 — a gain of ₹337 or 0.21% — before pulling back to a session low of ₹1,57,547, down ₹1,000 or 0.63%.
Silver futures (July 3) were more volatile, trading at ₹2,71,627 per kg, down ₹259 or 0.10%. At its worst, silver had fallen as much as 2.55% — or ₹6,937 — to an intraday low of ₹2,64,949, before recovering to an intraday high of ₹2,74,145, up ₹2,259 or 0.83%.
What Is Driving the Pressure
Commodity market analysts say precious metals are facing a dual headwind globally. A stronger US dollar and rising US Treasury yields — triggered by hotter-than-expected US inflation data — have significantly reduced market expectations of interest rate cuts by the US Federal Reserve this year. Since gold and silver offer no yield, higher bond returns make them comparatively less attractive.
Additionally, rising inflationary concerns linked to an energy shock in the Middle East have strengthened expectations of tighter global monetary policy, further weighing on the metals. UBS has also lowered its full-year silver investment demand forecast and projected a narrower global supply deficit, adding pressure specifically on silver, according to commodity experts.
Global Markets and COMEX Readings
In international markets, COMEX gold was down 0.39% at $4,543 per ounce, while COMEX silver declined a sharper 2.28% to $75.778 per ounce, reflecting the same risk dynamics playing out on domestic exchanges.
Crude Oil Surges on UAE Nuclear Facility Attack
Global crude prices surged on the same day amid concerns over supply disruptions following a reported attack on a nuclear facility in the United Arab Emirates. The international benchmark Brent crude climbed 2.37% — or $2.60 — to $111.86 per barrel, while US West Texas Intermediate (WTI) crude gained 3.11% — or $3.28 — to $108.70 per barrel. The crude spike, while typically a bullish signal for gold as an inflation hedge, is being offset by the yield and dollar pressure in the near term.
What to Watch
Traders will be closely monitoring further developments in West Asia, upcoming US Federal Reserve communications, and any fresh inflation prints that could reset rate-cut expectations. A de-escalation in geopolitical tensions could remove the safe-haven floor from gold, while a reversal in yields could provide relief to both metals.
Point of View
In theory, be a strong tailwind for gold — but the US yield surge is proving a more immediate headwind, reflecting how thoroughly the Fed rate-cut narrative has been repriced. The crude oil spike adds a third variable: energy-driven inflation could eventually push investors back into gold as a hedge, but that transmission takes time. Silver's sharper swings — nearly three times gold's intraday range — expose its dual identity as both a precious and an industrial metal, making it more sensitive to the growth-slowdown fears embedded in the UBS demand downgrade. The real risk is that a prolonged high-yield environment strips the safe-haven premium from gold precisely when geopolitical instability is at its peak.
NationPress
6 Aug 2026
Frequently Asked Questions
What are gold and silver prices on MCX today, 18 May?
On 18 May, MCX gold futures were trading at ₹1,58,697 per 10 grams around 11 am IST, up ₹150 or 0.09%. MCX silver futures were at ₹2,71,627 per kg, down ₹259 or 0.10%, after swinging sharply through the session.
Why are gold and silver prices volatile today?
Precious metals are caught between rising West Asia geopolitical tensions — which support safe-haven demand — and surging US Treasury yields driven by hotter-than-expected US inflation data, which reduces rate-cut expectations and pressures non-yielding assets like gold and silver.
What did UBS say about silver demand?
UBS lowered its full-year silver investment demand forecast and projected a narrower global supply deficit, according to commodity market experts. This added a specific downside pressure on silver beyond the broader macro headwinds affecting gold.
How are global crude oil prices moving and why?
Brent crude climbed 2.37% to $111.86 per barrel and WTI gained 3.11% to $108.70 per barrel on 18 May, driven by concerns over supply disruptions following a reported attack on a nuclear facility in the United Arab Emirates.
What is the outlook for gold and silver prices?
Market direction will depend on further West Asia developments, upcoming US Federal Reserve signals, and fresh US inflation data. A de-escalation in geopolitical tensions could remove gold's safe-haven floor, while any dovish Fed shift could provide relief to both metals.
