Gold and silver prices witnessed a steep decline at the opening on the Multi Commodity Exchange (MCX) on Friday as surging energy prices reignited inflation concerns and reinforced expectations that interest rates may remain higher for a prolonged period. Investors were also keeping a close watch on discussions between Donald Trump and Xi Jinping.
In the domestic futures market, MCX silver contracts for July 2026 delivery fell by Rs 11,700, or 4%, to Rs 2,79,458 per kilogram. Gold futures for June 2026 delivery declined by Rs 1,600, or nearly 1%, to Rs 1,60,355 per 10 grams. During the previous trading session, both gold and silver had ended largely unchanged.
Sentiment in the bullion market remained weak as higher crude oil prices revived worries over inflation, pushing up both bond yields and the US dollar. The stronger dollar and rising yields reduced hopes of near-term interest rate cuts, putting additional pressure on gold prices.