Gold and silver prices are facing fresh pressure during India’s festive season, when demand for precious metals typically rises around Dhanteras and Diwali. However, recent price declines have raised questions about whether bullion will recover or continue to fall in the coming days.
Market experts say rising crude oil prices have renewed concerns about inflation, while higher bond yields and a stronger US dollar are weighing on precious metals. Investors are now closely watching the US Federal Reserve’s policy meeting scheduled for October 27–28, 2026, as its decision and the Chair’s comments could influence the near-term direction of gold and silver prices.
Gold and Silver Face Pressure From Global Market Trends
Higher bond yields and a stronger dollar have made it difficult for precious metals to regain momentum. Attention is also turning to policy decisions from the European Central Bank and the Bank of Japan, along with important economic releases from major economies.
Upcoming indicators include US durable goods orders, consumer confidence, Personal Consumption Expenditures (PCE) inflation data and third-quarter GDP figures. Eurozone inflation figures will also be closely monitored.
Developments surrounding the US midterm elections, Russia-Ukraine peace talks and the continuing conflict in West Asia are additional factors that could influence market sentiment.
MCX Gold and Silver Prices Record Weekly Losses
The weakness in international markets has also affected domestic bullion prices. On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by ₹5,768, or around 4%, last week to close at approximately ₹1.42 lakh per 10 grams.
Silver recorded a steeper decline, dropping ₹15,087, or 7.14%, to settle at around ₹1.96 lakh per kilogram. The price slipped below the ₹2 lakh mark during the period.
Jatin Trivedi, Vice-President of Commodity and Currency Research at LKP Securities, said gold prices had continued to face downward pressure. He noted that persistent weakness had pushed MCX gold down by more than 3%, with prices trading around ₹1,42,800 per 10 grams.
Trivedi also pointed to rising US Treasury yields and the stronger dollar as key factors limiting attempts by precious metals to recover. These conditions have left gold and silver vulnerable to further selling.
International Gold and Silver Prices Also Decline
Overseas markets have experienced similar weakness. On COMEX, gold futures for December delivery fell by $173.2, or 4.14%, last week to close at $4,007.9 per ounce.
Gold briefly dropped to $3,989 per ounce on Friday before recovering above the $4,000 level.
Silver futures also declined, losing $3.35, or nearly 6%, to settle at $53.95 per ounce.
Pranav Mer, Senior Vice-President of the Commodity and Currency Research department (EBG) at JM Financial Services, said the downward trend in gold futures had continued, with international prices falling below $4,000 per ounce during the week. He added that silver’s decline reflected weakness in both industrial metals and gold.
Crude Oil Prices and the US Fed Meeting in Focus
Crude oil prices are adding another layer of uncertainty for bullion markets. Brent crude closed above $117 per barrel, raising concerns that persistent inflation could prompt central banks to maintain restrictive monetary policies or consider further interest rate increases.
The Federal Reserve’s upcoming policy announcement is therefore expected to be a major influence on gold and silver prices. Investors will also assess comments from the Fed Chair for clues about how long interest rates may remain elevated.
Trivedi advised caution in the near term, noting that gold could remain under pressure until there is greater clarity about the Federal Reserve’s policy direction. The decision may help determine whether prices stabilise around current levels or fall further.
If the Fed signals a hawkish approach, indicating limited scope for interest rate cuts, precious metals could face continued pressure. Any change in expectations about future rates, however, may influence the direction of bullion prices.
Disclaimer: This article is intended for informational purposes only and should not be considered financial or investment advice. Gold and silver prices can fluctuate due to economic data, central bank decisions, currency movements and geopolitical developments. Readers should conduct their own research and consult a qualified financial adviser before making investment decisions.