Gold prices on India’s Multi Commodity Exchange (MCX) have broken below the ₹1,41,000 per 10-gram threshold, while silver has declined to ₹2,21,000 per kilogram.
The pullback in precious metals marks a continuation of selling pressure that has weighed on the sector throughout the week.
The drop of nearly 1% in gold prices reflects growing market expectations that the Federal Reserve may maintain a hawkish stance, further supporting the dollar and pressuring precious metals.
The decline is primarily driven by a sharply stronger US dollar, which has climbed to its highest level in over a year.
The greenback’s resurgence has reversed recent safe-haven flows, making dollar-denominated assets more expensive for foreign buyers and dampening demand for non-yielding commodities like gold and silver.
Traders on the MCX have also been booking profits against the backdrop of the strengthening currency.
The drop of nearly 1% in gold prices reflects growing market expectations that the Federal Reserve may maintain a hawkish stance, further supporting the dollar and pressuring precious metals.