Gold and silver futures retreated on India’s Multi Commodity Exchange (MCX) on Friday morning, July 31, as traders booked profits amid a strengthening US dollar and escalating geopolitical tensions between the United States and Iran.
MCX gold August contracts fell 0.50% to ₹1,42,547 per 10 grams, while silver September contracts declined 0.40% to ₹2,19,117 per kilogram in early trading.
The pullback occurred despite US inflation data coming in below expectations, which typically supports risk assets and precious metals by raising hopes for monetary policy easing.
The mixed signals highlight the complex interplay facing bullion markets.
While softer inflation prints from the US suggest a more dovish path for the Federal Reserve, the immediate pressure from a firmer greenback and heightened geopolitical risk has dominated short-term sentiment.
This follows a period of volatility on the MCX, where gold and silver had previously seen sharper declines driven by broader risk-off dynamics and crude oil market fluctuations.