Gold and silver prices witnessed a sharp sell-off, with MCX gold falling to ₹1,38,386 and silver trading at ₹1,79,308 per kg. The silver quote is for the December 4, 2026 expiry contract.
In the international market, spot gold fell below $3,900 per ounce, while silver dropped below $50 per ounce, touching an 11-month low, as inflation concerns, elevated crude oil prices and expectations of tighter US monetary policy weighed on precious metals.
Gold and silver prices in international markets
Spot gold fell $122.06, or 3.04%, to $3,899.33 per ounce, slipping below the $4,000 mark. Silver tumbled $3.10, or 6%, to $49.06 per ounce, marking its lowest level in nearly 11 months.
According to Saumil Gandhi, senior analyst of commodities at HDFC Securities, bearish global factors weighed on gold prices in the domestic market.
Ashish Rajodiya, head of commodities at PL Capital, attributed the decline in silver prices to elevated crude oil prices, inflation concerns and expectations of tighter US monetary policy.
“Spot gold slipped below $3,900 per ounce for the first time since mid-July, while silver tumbled more than 3% to fall below $50, its lowest level since November, as elevated oil prices, stronger-than-expected US GDP growth and a hotter inflation print kept the path open for another Fed rate hike this year,” Kaynat Chainwala, AVP of commodity research at Kotak Neo, said, according to PTI.
Concerns over the sustainability of AI-related investment and a sharp sell-off in technology stocks also raised the risk of investors liquidating precious metals positions to cover losses elsewhere, Chainwala said.
Gold, silver set for monthly losses
Gold and silver were heading for monthly declines of more than 4% and 16%, respectively, Chainwala said.
She added that any support from softer bond yields and a weaker dollar was outweighed by broader deleveraging across financial markets. Investors favoured US Treasuries as a safe haven amid the risk aversion, limiting inflows into non-yielding precious metals.