Gold and silver prices fall on MCX ahead of Diwali
MCX gold and silver futures dropped on Tuesday as investors weighed US election outcomes and interest rate expectations.
Gold and silver prices opened lower on the Multi Commodity Exchange (MCX) on Tuesday, according to The Economic Times. Gold futures for December 2026 delivery fell by Rs 1,400 to Rs 1,38,823 per 10 grams, while silver futures for the same period dropped by Rs 4,300 to Rs 1,83,779 per kg.
The decline follows a rebound in oil prices after a US attack on Iran, which has raised inflation concerns. Investors are also awaiting the results of the US midterm elections to gauge potential shifts in fiscal policy.
Market sentiment is being influenced by the possibility of higher interest rates. The CME FedWatch tool indicates a 73 per cent probability that the Federal Reserve will raise rates in December. Higher rates typically make non-yielding assets like gold less attractive to investors.
Manoj Kumar Jain of Prithvi Finmart stated that gold and silver prices are expected to remain volatile this week due to geopolitical tensions and fluctuations in the dollar index and crude oil prices. He suggested that long-term investors could use systematic investment plans to accumulate metals during this market decline.
International spot gold rose 0.3 per cent to $3,960.80 per ounce, while spot silver gained 0.3 per cent to $50.79 per ounce. Investors are also monitoring US Factory Orders data for September, which is scheduled for release later today.
