Gold and silver futures opened lower as surging crude oil prices revived inflation and interest-rate concerns, although safe-haven demand continues to provide support to precious metals

Gold and silver prices came under pressure in early trade on Thursday, with both precious-metal futures opening lower on the Multi Commodity Exchange (MCX). Rising crude oil prices and renewed concerns over inflation have increased expectations that interest rates could remain higher for longer, weighing on non-yielding assets such as gold and silver.

However, persistent demand for gold as a hedge against inflation, geopolitical uncertainty and market volatility continues to provide a cushion to prices.

At the time of writing, MCX gold was trading around ₹1,53,650 per 10 grams, while MCX silver was around ₹2,43,100 per kg.

MCX Gold Opens Lower

The benchmark October gold futures contract opened at ₹1,53,581 per 10 grams, down ₹182 from the previous close of ₹1,53,763.

During the session, the contract moved between a high of ₹1,53,838 and a low of ₹1,53,581.

At the time of writing, October gold futures were trading at around ₹1,53,650, down approximately ₹113 from the previous close.

The precious metal has witnessed considerable volatility as investors weigh inflation risks against expectations surrounding global monetary policy.

Silver Futures Also Under Pressure

Silver followed gold lower in early MCX trading.

The benchmark December silver futures contract opened at ₹2,43,292 per kg, down ₹907 from the previous close of ₹2,44,213.

The contract subsequently touched an intraday high of ₹2,43,581 and a low of ₹2,42,726.

At the time of writing, silver was trading near ₹2,43,110 per kg, down around ₹1,103 from the previous close.

Silver's greater industrial exposure means the metal can also respond to changes in global growth expectations, besides movements in gold, the US dollar and interest rates.

Gold and Silver Trade Lower in International Markets

Precious metals were also trading under pressure in international markets.

On Comex, gold opened at approximately $4,448 per ounce, compared with the previous close of $4,460.70.

At the time of writing, Comex gold was trading around $4,458.90 per ounce, down $1.80.

Silver futures opened at approximately $67.94 per ounce, against the previous close of $68.64. The metal was subsequently trading around $68.07 per ounce, down approximately $0.57.

The relatively modest decline in international gold prices indicates that the metal continues to find support despite near-term macroeconomic headwinds.

Crude Oil Prices Put Pressure on Bullion

One of the major factors influencing precious metals currently is the sharp rise in crude oil prices.

Higher oil prices can feed into consumer and producer prices, increasing concerns about inflation. If inflation remains elevated, central banks may have less flexibility to reduce interest rates or could potentially maintain restrictive monetary policy for longer.

Higher interest rates generally increase the opportunity cost of holding non-yielding assets such as gold.

This creates a near-term headwind for bullion, even though inflation itself can simultaneously increase gold's appeal as a store of value.

Inflation Hedge Demand Provides Support

Despite the pressure from interest-rate expectations, gold continues to benefit from its traditional role as an inflation hedge.

When investors fear that rising prices could erode the purchasing power of currencies and financial assets, gold can attract defensive allocations.

The current market is therefore witnessing competing forces: higher oil prices and interest-rate concerns on one side, and safe-haven and inflation-hedging demand on the other.

The balance between these factors is likely to determine gold's next major directional move.

Gold Remains Sensitive to US Monetary Policy

Expectations surrounding the US Federal Reserve remain an important driver of international gold prices.

A sustained rise in inflation expectations could lead investors to reduce expectations for monetary easing, potentially supporting US Treasury yields and the dollar.

Both developments can create pressure on gold.

On the other hand, if economic data points towards slower growth or inflation eventually moderates, expectations for lower rates could return and provide fresh support to bullion.

Dollar Movement Also Crucial

The US dollar remains another important variable for gold and silver.

Since international precious metals are primarily priced in dollars, a stronger dollar can make bullion relatively more expensive for holders of other currencies and potentially weigh on demand.

Conversely, dollar weakness can support precious-metal prices.

For Indian investors, currency movements have an additional impact because international bullion prices are translated into rupee terms. A weaker rupee can partially offset a decline in international gold prices.

Gold Has Seen Extreme Volatility

The large gap between current prices and the reported yearly highs underlines the significant volatility witnessed in precious metals markets.

The source data places the year's reported high for MCX gold at ₹1,80,779 per 10 grams, while the reported international Comex high is $5,586.20 per ounce.

Silver has also witnessed substantial volatility, with the reported MCX yearly high at ₹4,20,048 per kg and the Comex high at $121.79 per ounce.

Such wide price ranges highlight the importance of risk management for traders operating in precious-metal futures.

Gold ETF Demand Remains a Structural Positive

Despite the current weakness, investment demand for gold remains an important long-term support factor.

Global gold-backed ETFs attracted approximately $18 billion in August 2026, according to the World Gold Council, marking one of the strongest monthly inflow periods on record.

Global gold ETF assets under management rose to approximately $615 billion, while collective holdings increased to a record 4,189 tonnes.

Strong ETF inflows indicate that institutional investors continue to use gold as part of their portfolio diversification strategy.

Key Levels for Gold Traders

From a trading perspective, gold's immediate direction is likely to depend on whether it can regain lost ground after the early decline.

For international gold, the $4,500 zone remains an important psychological and technical level.

A sustained move above this area could improve sentiment and potentially bring higher resistance levels into focus.

On the downside, the $4,400 region remains an important support zone. A decisive break below this level could increase the risk of a deeper correction.

For Indian traders, currency movements and the relationship between international bullion prices and domestic MCX contracts should also be monitored closely.

Silver May Remain More Volatile

Silver could experience greater volatility than gold because it combines precious-metal characteristics with substantial industrial demand.

Any deterioration in global manufacturing or economic growth expectations could weigh on industrial demand for silver.

At the same time, demand linked to renewable energy, electronics and other industrial applications provides a structural long-term support factor.

Therefore, silver investors should watch both monetary-policy expectations and global industrial activity.

What Investors Should Watch

Precious-metal investors should closely monitor:

• Crude oil prices and inflation expectations

• US Federal Reserve interest-rate expectations

• US Treasury yields

• Dollar index movement

• Geopolitical developments

• Global gold ETF inflows

• MCX gold support and resistance levels

• MCX silver price momentum

• US economic and inflation data

• Rupee-dollar movements

These factors could determine whether the current decline develops into a deeper correction or becomes a temporary pause within the broader precious-metals trend.

Market Outlook

Gold and silver opened lower on MCX as higher crude oil prices revived concerns over inflation and interest rates. Gold around ₹1,53,650 and silver near ₹2,43,100 remain sensitive to changes in global yields, the dollar and geopolitical risk.

The near-term outlook is likely to remain volatile. For gold, the international $4,500 level remains a key resistance zone, while $4,400 is an important support area. A sustained recovery above resistance could revive bullish momentum, whereas a break below support could trigger further profit booking.

Despite the short-term pressure, strong global gold ETF inflows and continued safe-haven demand indicate that the longer-term investment case for bullion remains intact. Traders should therefore watch crude oil, US inflation data, Fed expectations and currency movements closely before taking fresh positions.