These days, huge fluctuations are being seen in the prices of gold and silver in the Indian bullion market. If we look at the data of the last few days, while gold on Multi Commodity Exchange (MCX) has fallen by Rs 1,900 per 10 grams in the last 3 days, on the contrary, silver has gained a strong gain of Rs 1,400 per kg in just 2 days.
If we talk about this morning's trading, MCX Silver Futures for September 2026 delivery were seen trading at Rs 2,40,840 per kg with a rise of Rs 840. On the other hand, gold futures for October 2026 delivery stood at Rs 1,52,756 per 10 grams, registering a marginal increase of only Rs 144 per 10 grams.
Condition of international gold and silver market
Along with the domestic market, if we talk about the global market i.e. international level, then there is also a mixed effect in the prices. Spot gold was marginally down 0.2% at $4,345.99 an ounce, while US gold futures (December delivery) were up 0.2% at $4,382.70 an ounce. Apart from this, spot silver also declined by 0.4% and settled at $66.78 an ounce.
Why are there so many changes in the prices of gold and silver?
The main reason behind this fluctuation in prices is the US dollar, which these days remains close to its highest level in two months. Due to the strengthening of the dollar, there is heavy pressure on the precious metals denominated in American currency i.e. gold and silver in the international market, as their purchase becomes expensive for buyers holding other currencies.
Apart from this, geopolitical tension is also a big reason. There is a stir in the market amid the warnings given by US President Donald Trump regarding Iran. Also, the recent increase in interest rates by the US Federal Reserve by 25 basis points to 3.75%-4.00% and hint of another hike by the end of the year has also influenced the commodity market movements. The Bank of Japan and the European Central Bank have also recently increased interest rates.
What should be the trading strategy according to experts?
Experts believe that investors need to act very wisely in this volatile market. According to market experts, gold on MCX is getting strong support on the downside, while there is resistance on the upside. Experts suggest that investors should look for buying opportunities at selected levels during the fall and should enter the market with appropriate stop loss so that any big loss can be avoided.