Silver has given up all its gains made this year, while gold is headed for a similar trend, as both precious metals have declined by 13 per cent and over 5 per cent, respectively, over the past week.

The plunge in precious metals was in sync with the global trend, where they have dropped to an eight-month low due to the dollar’s strength and hopes of the US Federal Reserve raising interest rates. 

On Thursday, silver in the Mumbai spot market slid to ₹2,16,541 a kg. At the start of the year, it was quoted at ₹2,36,070. On MCX, gold July contracts traded at ₹2,20,402 a kg. In the global market, silver traded at $58.03 an ounce at 1900 hours IST, down over 25 per cent in the past month. 

Gold was quoted at ₹1,39,873 per 10 gm in the Mumbai spot market. On MCX, gold August futures ruled at ₹1,42,656 per 10 gm. In the global market, gold recovered to rise to $4,023 an ounce, still over 11 per ent lower than a month ago.

Price correction

Colin Shah, MD, Kama Jewelry, said gold and silver were undergoing price correction as a result of a mix of dollar strength and higher expectations of additional hikes in U.S. rates, which have been a drag on investor appetite for non-yielding assets like gold and silver.

“ The near-term trend can still be volatile, particularly silver after the steep drop, but this doesn’t necessarily affect the overall dynamics,” he said.

Renisha Chainani, head of research at Augmont, said gold and silver are extending their losing streak even as a temporary US-Iran ceasefire offers little relief, caught between three simultaneous headwinds. 

“A sharp sell-off in AI stocks has triggered abroad risk-off wave that is spilling into precious metals,” she said.

Volatility likely

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said market participants will now shift their focus to next week’s US non-farm payrolls and unemployment data, which are expected to provide fresh direction for gold and the dollar. 

“Volatility is likely to remain elevated until the release of these key economic indicators,” he said. 

Shah said periods like these typically tend to attract value buying, particularly in physical-demand-led markets such as India, when prices soften. 

“This drop in prices still looks more of a healthy correction than a structural break, and the long-term fundamentals are still bullish for precious metals,” he said.

Down since Iran war

Chainani said current price levels may attract steady central bank buying, which held firm through May. However, persistent inflation concerns at the Fed are expected to cap investment demand and keep near-term risks skewed to the downside.

Gold soared to $5,608 and silver to $121.62 an ounce on January 29 this year. However, after the Iran war broke out on February 28, precious metals have been witnessing a downtrend. The yellow metal has shed 19 per cent since peaking, while the white metal 53 per cent.

Besides a strong dollar and hopes of the US Federal Reserve increasing interest rates, rising bond yields and investors switching to equities have dragged them. 

Platinum and palladium, part of the precious metals complex, have also been hammered along with gold and silver. Platinum was quoted at $1,585 an ounce, a 7.5 per cent decline over the past week and a 19 per cent fall since last month. Palladium ruled at $1,182.50, down 8 per cent week-on-week and nearly 16 per cent from a month ago. Both the metals have declined by 24 per cent and 28 per cent, respectively, this year.

Published on June 25, 2026