SRINAGAR: Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Monday, extending losses for a second consecutive session as escalating tensions in the Gulf fuelled inflation concerns and increased uncertainty in global financial markets.
MCX silver futures for September 2026 delivery declined by Rs 5,400, or 2.5 per cent, to Rs 2,17,277 per kg, while gold futures for August 2026 delivery fell by Rs 2,000 to Rs 1,41,557 per 10 grams.
The decline followed heightened tensions between the United States and Iran over the weekend, during which the two sides reportedly exchanged missile and drone attacks. The developments intensified concerns over energy supplies and the broader economic outlook.
The geopolitical tensions also pushed global oil prices up by about 4 per cent, strengthened the US dollar and weighed on Asian equity markets, as investors assessed the potential inflationary impact of higher energy costs.
Market participants are now awaiting key economic events in the United States, including Federal Reserve Chair Kevin Warsh’s first semi-annual testimony before Congress, as well as the release of June Consumer Price Index (CPI), Producer Price Index (PPI) and retail sales data later this week for further clues on inflation, economic growth and the future course of monetary policy.
In its monetary policy report submitted to the US Congress on Friday, the Federal Reserve said inflation had accelerated further this spring, citing the combined impact of tariffs, higher energy costs linked to geopolitical tensions and rapid investment in artificial intelligence.
