Gold Silver Crash: Dollar Strength Hits MCX Hard

Friday brought grim tidings for gold and silver investors in India, as prices nosedived up to 11,700 rupees on the back of an unyielding dollar rally. MCX data painted a picture of widespread weakness across both metals from the opening bell.

Silver led the decline, with the July 2026 contract dropping 11,102 rupees (3.81%) from 291,102 rupees to 280,000 rupees. It carved an intraday bottom at 279,458 rupees—a 11,644-rupee fall from prior levels—and scaled a high of 283,938 rupees. By mid-morning at 10:06 AM, silver hovered at 282,539 rupees, weaker by 2.94% or 8,563 rupees.

Gold wasn’t immune, opening at 160,790 rupees for the June 2026 lot, down 1,188 rupees or 0.73% from 161,978 rupees. The session’s low stood at 160,355 rupees (minus 1,623 rupees), with a high of 160,992 rupees. It was last seen at 160,540 rupees, off 1,438 rupees or 0.89%.

Global markets echoed the slide, with spot gold at 4,615 dollars/oz (-1.54%) and silver at 81.49 dollars/oz (-4.47%). Analysts highlight gold’s range-bound action between 4,600-4,750 dollars, with key support in the 4,560-4,520 zone and resistance from 4,700 upwards.

Fueling the rout is the dollar index’s advance to 98.955, a 0.23% gain and five-week peak. It benchmarks the USD against euro, yen, GBP, CAD, SEK, and CHF.

With equity markets buoyant and bond yields rising, precious metals are losing luster. Domestic factors like steady imports and lackluster physical demand compound the pressure. Traders eye dollar peaks for buying opportunities, but caution prevails amid mixed economic signals.