Gold and Silver Tumble 2% Amid Dollar Strength, Oil Rally

A powerhouse US dollar and soaring crude prices hammered gold and silver in Mumbai’s trading rings on Monday, driving prices down up to 2%. The downturn gripped MCX from the opening bell, erasing recent gains in these traditional safe havens.

Gold for June 2026 delivery eased 0.56% or ₹859 to ₹1,51,793 by 11:20 AM, after probing a low of ₹1,51,457 and a high of ₹1,51,999. Silver futures for May 2026 plunged sharper at 1.93% or ₹4,693, settling at ₹2,38,581, with extremes of ₹2,37,190 and ₹2,39,068.

International benchmarks echoed the pain: gold shed 0.84% to $4,747 per ounce, while silver cratered 2.33% to $74.70. On Comex, gold hugged the $4,700-$4,750 corridor, analysts said, with bearish momentum building below $4,650 en route to $4,600-$4,570. Upside stalls near $4,750-$4,770.

Blame landed squarely on the dollar index’s 0.36% rise to 98.8, which diminished bullion’s allure for non-dollar holders and weakened the rupee by 55 paise. Crude oil’s explosive 8% jump beyond $100 further strained sentiment, amplifying cost pressures.

This perfect storm has prompted aggressive selling, as traders reposition for a dollar-dominant environment. Festive demand in India offers some cushion, but global headwinds dominate. Watch for US inflation prints and Fed rhetoric to gauge if this dip marks a bottom or prelude to deeper corrections.