Synopsis: On the back of firm crude oil prices and stalled US-Iran negotiations, both gold and silver futures opened Thursday’s MCX session sharply lower: silver shedding 2.4 percent to Rs. 2,42,220 per kg while gold slipped 0.7 percent to Rs. 1,51,719 per 10 grams reversing much of the previous session’s silver rally and testing gold traders’ resolve at elevated levels.
Precious metals came under pressure in early Thursday trading on the Multi Commodity Exchange of India, as a confluence of macro factors pushed both gold and silver futures into the red. Crude oil prices stayed firm through the session, amplifying inflation concerns and keeping alive the prospect of an extended high-interest-rate environment.
Uncertainty around US-Iran negotiations added another layer of caution, with traders unwilling to build long positions in metals ahead of any diplomatic development that could shift oil supply assumptions.
Silver futures for May 2026 delivery bore the sharper blow, falling Rs. 6,144 to Rs. 2,42,220 per kg on the MCX. This came a session after silver had surged nearly 2 percent, gaining around Rs. 4,000, making Thursday’s decline a near-complete reversal of that move. The whipsaw points to thin conviction on either side at current silver levels, with traders responding to macro headlines rather than fundamental demand shifts.
Gold contracts for June 2026 delivery declined Rs. 938, or 0.7 percent, to Rs. 1,51,719 per 10 grams. Gold’s more contained fall compared to silver reflects its role as the anchor metal, less prone to industrial-demand speculation, more directly tied to real rate expectations. The previous session had closed gold virtually flat, so Thursday’s dip is the first directional move for the yellow metal in two days.
In international markets, spot gold was down 0.7 percent at $4,705.09 per ounce as of 0215 GMT, with US gold futures for June delivery off 0.6 percent at $4,722.10. Spot silver declined 1.4 percent to $76.64 per ounce, a smaller percentage drop than MCX silver, with the gap partly attributable to currency effects and domestic liquidity conditions.
The relationship between crude oil and gold is not straightforward: while oil-driven inflation should theoretically support gold as a store of value, the transmission mechanism breaks down when investors anticipate that inflation will prompt central banks to hold rates higher for longer. At that point, the opportunity cost of holding a non-yielding asset like gold rises, and institutional flows rotate elsewhere. That is the dynamic at work on Thursday.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
