Gold futures dropped 4.10% on the Multi Commodity Exchange, settling at Rs 1.36 lakh per 10 grams as investors responded to shifting global monetary signals and persistent inflation pressures.
Precious metals faced broad downward pressure over the past week on the MCX, where December-delivery gold futures fell by Rs 5,847. Meanwhile, silver futures declined by nearly 5%, dropping Rs 8,791 to end the week at Rs 1.76 lakh per kilogram.
The corrective trend in bullion stems from a strong US dollar, elevated Treasury yields, and caution ahead of key economic indicators from major economies.
“Gold extended its corrective trend this week to close around Rs 1.36 lakh per 10 grams on the MCX, registering negative weekly returns of over 4 per cent amid a strong US dollar, elevated Treasury yields and persistent inflation concerns,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Over the past week in global markets, December-delivery Comex gold futures tumbled by nearly 5%—or $188.6—to finish the session at $3,886.3 per ounce. Silver quotations additionally retreated, giving up 5.43% ($2.82) to close out the weekly session at $49.12 per ounce.
“Gold futures consolidated in a range on Friday before closing almost flat, but recorded a weekly loss of more than 4 per cent as the US dollar and global bond yields rebounded,” Pranav Mer, Senior Vice President, EBG – Commodity & Currency Research at JM Financial Services Ltd told PTI.
According to Mer, silver futures maintained their downward correction by recording weekly declines exceeding 5% and ending the week under $49 per ounce. Initial pressure on precious metals emerged following hawkish remarks by Federal Reserve officials, with prices facing further headwinds after inflation figures from the US and other regions came in higher than expected.
Market participants are monitoring multiple upcoming data releases, including inflation figures from India, the US, the UK, the Eurozone, and Japan, alongside minutes from the Federal Open Market Committee meeting and US employment figures.
China’s industrial production data remains another area of focus, as these figures could influence industrial metals, particularly silver. Developments in West Asia are shaping the outlook, where potential tensions between Washington and Tehran could drive crude oil prices higher, adding to inflationary pressures and fueling expectations of tighter monetary policy.
“The near-term outlook remains cautious to bearish, with volatility expected to stay elevated. On the domestic front, MCX prices will also remain influenced by rupee movements and international bullion trends,” Trivedi said.
Data from the World Gold Council (WGC) indicates that bullion investors in exchange-traded funds have mostly remained inactive during the current quarter, succeeding the unprecedented inflows witnessed in the third quarter of 2026. Central bank net acquisitions of the yellow metal have persisted, whereas retail demand for bullion bars and coins has moderated.
Rajeev Sharan, Head of Research at Brickwork Ratings, observed that gold has moved into a consolidation phase following its strong rally earlier this year. Market probabilities of a December rate increase have climbed close to 90%, driven by the recent bullion sell-off that was instigated by a strengthening US dollar.
In the near future, Sharan anticipates that international gold rates will fluctuate within a band of $3,850 to $4,000 per ounce. Downward price pressures in India are expected to find a buffer thanks to persistent central bank acquisitions and heightened consumption tied to the domestic wedding season.
“However, rate worries may weigh on sentiment in the short term, but steady demand continues to support gold’s long-term appeal,” Sharan added.
