MCX Gold Price Falls Below ₹1.38 Lakh per 10 Grams, Silver Hits 6% Lower Circuit

Gold and Silver Prices in India Decline Sharply

Market Overview On Monday, gold and silver prices in India opened lower due to weakness in global bullion prices. The escalating US-Iran war has intensified inflation concerns and raised the likelihood of higher global interest rates.

Gold Prices The MCX gold rate opened 3% lower at ₹1,40,158 per 10 grams, compared to its previous close of ₹1,44,492. It hit a low of ₹1,36,403, slipping ₹8,089, or 5.59%. The MCX gold price was trading lower by ₹7,608, or 5.27%, at ₹1,36,884 per 10 grams.

Silver Prices The MCX silver price for May futures contracts opened 4% lower at ₹2,17,702 per kg, compared to its previous close of ₹2,26,772. The selling in silver prices intensified, and the MCX silver rate crashed 6% to hit the lower circuit at ₹2,13,166, down ₹13,606.

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International Market In the international market, gold prices declined more than 2%, extending their drop to a roughly four-month low. The spot gold price fell 2.5% to $4,372.86 per ounce, extending losses for a ninth consecutive session. US gold futures for April delivery fell 4.4% to $4,375.60. Spot silver prices plunged 3.2% to $65.61 per ounce.

Monetary Policy Expectations The escalating US-Iran war has led investors to reassess monetary policy expectations, reducing the likelihood of interest rate cuts and increasing bets on a potential Federal Reserve rate hike by year-end. According to the CME Fed Watch Tool, there is a 22% probability of a rate hike at the 17th June 2026 Fed meeting, up from 15% a week ago.

Market Outlook According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, the MCX gold price may find support at ₹1,33,000 - ₹1,30,000 levels, while resistance is seen at ₹1,40,000 - ₹1,44,000 levels. He recommends selling gold on every bounce. The MCX silver price is likely to find support at ₹2,00,000 - ₹1,85,000 levels, while resistance is placed at ₹2,26,000 - ₹2,40,000 levels. Investors may sell silver on every bounce.