Weekly Bullion Review: Gold Logs ₹3,000 Loss, Silver Plunges ₹7,000 as Oil Rally

Mumbai, July 18: Precious metals witnessed a brutal sell-off during the week ended 17 July, with gold and silver extending their downward trajectory as escalating US-Iran tensions pushed crude oil prices sharply higher, reviving inflation concerns and strengthening expectations that the US Federal Reserve would maintain interest rates at elevated levels.  

Gold futures for August delivery on the Multi Commodity Exchange (MCX) declined by ₹385 to settle at ₹1,40,733 per 10 grams on Friday. For the week, gold recorded a loss of approximately ₹3,000 per 10 grams, while silver declined by about ₹7,000 per kilogram. 

Global Gold Prices Plunge 3.2% Weekly as COMEX Breaches $4,000 Mark 

International markets mirrored the bearish sentiment, with gold suffering its steepest weekly decline in six weeks. COMEX gold futures for August settlement dropped 1.77% overnight on Friday, touching an intraday low not seen since early July. Spot gold gained 0.5% to $3,988.57 per ounce by 0103 GMT on Friday, having touched its lowest since 1 July earlier in the session.  

Check list of Gold ETFs in India

For the week, gold declined 3.2%, marking its biggest weekly loss since early June. The losses outweighed support from weaker-than-expected US inflation data for June. COMEX gold futures were trading at $3,987.50 an ounce, down 0.12% on Friday, while silver futures fell 1.24% to $55.49 an ounce. Bernstein raised its 2026 gold price target to $4,533 per ounce, citing central bank reserve diversification and expectations that the US Fed will only hike rates once or twice at most over the coming year. 

Global Silver Tumbles to 9-Month Low as Industrial Demand Concerns Mount 

Silver witnessed steeper losses than gold in global markets, reflecting its dual role as both a precious and industrial metal. COMEX silver tumbled 2.9% overnight on Friday, touching an intraday low of $55.595 per ounce, its lowest since November 2025. Silver futures declined 1.36% to $55.43 per ounce after falling from levels above $58 earlier in the week.  

Also Read: How to Invest in Gold for Beginners: Simple Start Guide 

Spot silver was trading near $55.68 per ounce, while platinum and palladium also witnessed sharp declines of 3.1% and 4.1%, respectively. For the week, silver lost approximately 8%, marking a sharper percentage drop compared with gold’s 3.2% decline. Concerns over slowing industrial demand added to the downside pressure on silver. 

MCX Gold Opens Week at ₹1.42 Lakh, Recovers Marginally to ₹1.40 Lakh by Friday 

The domestic market mirrored the global weakness, with gold and silver extending their losses in India from the very start of the week. On Monday, 13 July, MCX gold futures for August delivery fell ₹1,413, or 0.98%, to ₹1.42 lakh per 10 grams. The decline followed the previous week’s sharp correction, when gold futures had dropped ₹3,900, or 2.65%. According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by ₹1,079 to ₹1,42,289 per 10 grams, while silver dropped by ₹3,155 to ₹2,17,235 per kilogram. 

By Friday, 17 July, MCX gold futures for August 2026 delivery declined by ₹385 to ₹1,40,733 per 10 grams. In early morning trade on Friday, gold futures rose 0.26% to ₹1,40,718 per 10 grams, while silver futures slipped 0.23% to ₹2,15,512 per kilogram. MCX silver futures for September 2026 delivery were down ₹745 at ₹2,15,268 per kilogram on Friday. For the week, gold declined ₹3,000 per 10 grams, while silver declined ₹7,000 per kilogram. 

Delhi 24-Carat Gold Slips to ₹1,43,430, Mumbai Steady at ₹14,328 Per Gram 

Retail gold prices across major Indian cities declined during the week, reflecting the bearish sentiment in futures markets. In the national capital, 24-carat gold fell by ₹300 to ₹1,43,430 per 10 grams on Friday. Gold had remained steady at ₹1,46,300 per 10 grams in Delhi on Thursday before the Friday decline.

Also Read: How to Invest in Gold Online 

In Mumbai, 24K gold was priced at ₹14,328 per gram, down ₹1 from the previous session, while 22K gold slipped by ₹1 to ₹13,134 per gram. For 22K gold per 10 grams, Mumbai stood at ₹1,28,828, Delhi at ₹1,28,599, Chennai at ₹1,29,204, Kolkata at ₹1,28,654, Bengaluru at ₹1,28,929, and Hyderabad at ₹1,29,030. 

Chennai 24K gold fell by ₹55 per gram to ₹14,291, with 22K gold slipping by ₹50 per gram to ₹13,100. In Bengaluru, 24K gold eased by ₹1 per gram to ₹14,328, while 22K gold slipped by ₹1 to ₹13,134. In Hyderabad, 22-carat gold was at ₹1,30,650 per 10 grams with a fall of ₹700, while 24-carat gold was at ₹1,43,280. In Ahmedabad, 24-carat gold stood at ₹1,43,330 per 10 grams, while 22-carat gold was trading at ₹1,31,390. 

Silver Retail Prices Show Mixed Trend as Delhi Surges ₹15,000, Other Cities Decline 

Silver retail prices exhibited a mixed trend across major cities on Friday. In Delhi, silver surged by ₹15,000 to ₹2,56,900 per kilogram, marking a sharp contrast to the overall bearish trend. However, in other major cities, silver prices declined. Silver price in Chennai stood at ₹235 per gram and ₹2,35,000 per kilogram. On the MCX, silver September futures traded weak by 0.77% or ₹1,663 at ₹2,14,350 per kilogram. Silver futures fell on Friday to ₹2,14,755 per kilogram on the Multi Commodity Exchange due to participant sell-off. The India gold market update noted that gold discounts in India increased to a one-month-high, with ample domestic supply keeping the local market at a discount. 

Crude Oil Surge, Hawkish Fed Signals Drive Bullion Downside Despite Safe-Haven Status 

The primary driver behind the week’s decline in precious metals was the sharp rise in crude oil prices amid escalating US-Iran tensions. Renewed military exchanges between the United States and Iran pushed Brent crude to near $84.8 per barrel, putting it on track for its biggest weekly gain in about three months.  

Check list of Silver ETFs in India 

Higher oil prices revived fears that inflation could remain elevated, prompting investors to expect the Federal Reserve to keep interest rates higher for longer. Higher interest rates typically support the US dollar and Treasury yields, making non-interest-bearing assets such as gold and silver less attractive.  

“Gold prices remained under pressure as renewed military tensions between the US and Iran boosted oil prices, reviving concerns over energy-driven inflation and reinforcing expectations that the Federal Reserve could keep interest rates higher for longer,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services. 

US Inflation Data Offers Temporary Relief but Fails to Reverse Bearish Trend 

Mid-week brought a significant development that temporarily eased pressure on bullion. Weaker-than-expected US inflation data boosted risk appetite and reduced expectations of near-term interest rate hikes by the Federal Reserve. The latest US Consumer Price Index (CPI) report showed headline inflation fell 0.4% in June, marking its first monthly decline since the pandemic. Core inflation also came in below market expectations, reinforcing hopes that the Federal Reserve may keep interest rates unchanged at its July meeting.  

Following the data, markets sharply pared expectations of a July rate hike, with the implied probability falling to around 16%. However, the relief proved short-lived as hawkish signals from Federal Reserve officials later in the week weighed on sentiment. Dallas Federal Reserve President Lorie Logan became the first of Fed Chairman Kevin Warsh’s new colleagues to publicly call for a rate hike.  

Fed Vice Chair Philip Jefferson also indicated he would be open to raising rates if inflation fails to show meaningful improvement in the near term. Supporting the case for higher rates, the number of Americans filing new unemployment benefit claims declined last week, while US retail sales edged higher in June. 

Silver Underperforms Gold Amid Industrial Demand Concerns 

Silver faced additional headwinds beyond the macroeconomic factors affecting gold. As both a precious and industrial metal, silver’s price is influenced not only by investment demand but also by industrial consumption.  

Also Read: How to Invest in Silver: 6 Best Ways (2026)

Concerns over slowing industrial demand added to the downside pressure on silver, causing it to underperform gold during the week. For the week, silver declined approximately 8%, a sharper percentage drop compared with gold’s 3.2% loss. “Silver could remain relatively more volatile because its prices are also influenced by industrial demand and broader economic expectations,” analysts noted. On the MCX, silver traded below ₹2.15 lakh per kilogram by Friday, with prices declining to as low as ₹2,14,350. Technical indicators suggested that MCX silver had entered oversold territory, with support emerging around ₹2,18,000 per kilogram. 

Gold Discounts Deepen in India as Volatility Hurts Physical Demand 

The domestic physical market reflected the bearish sentiment, with dealers offering gold at discounts of up to $19 an ounce over official domestic prices, including 15% import and 3% sales taxes. This compared with premiums of up to $5 an ounce and discounts of up to $7 an ounce a week earlier, indicating a significant deterioration in physical demand. The India gold market update noted that international and domestic gold prices fell sharply in June and have broadly stabilised in July, with ample domestic supply keeping the local market at a discount. 

Key Triggers to Watch: Geopolitics, Oil Prices, and Fed Policy 

Analysts expect bullion to remain volatile in the coming weeks as markets assess several key triggers: developments in the US-Iran conflict and their impact on crude oil prices, movement in the US dollar and Treasury yields, signals from the Federal Reserve on interest rates, and global risk sentiment.  

Any signs of easing inflation or a softer stance from the Federal Reserve could support gold and silver. However, if oil prices continue to rise and inflation concerns intensify, bullion may remain under pressure in the near term. The US dollar’s trajectory will also be crucial, as a stronger dollar typically weighs on dollar-denominated commodities like gold and silver.  

Despite the recent correction, several market participants remain positive on the long-term outlook for precious metals, with a recent outlook by Tata Mutual Fund noting that gold continues to benefit from sustained central bank buying and ongoing geopolitical uncertainties. 

Gold and silver recorded sharp weekly declines of approximately ₹3,000 and ₹7,000 respectively on the MCX, while global gold fell 3.2% for its steepest weekly loss in six weeks. COMEX gold breached the $4,000 mark, and COMEX silver hit a nine-month low of $55.595 per ounce. Retail gold prices declined across major Indian cities, with Delhi 24-carat gold at ₹1,43,430 and Mumbai at ₹14,328 per gram. Key triggers to monitor include West Asia developments, oil price movements, Fed policy signals, and US dollar trajectory.