Precious metals experienced widespread selling pressure across domestic and international markets, driven by weakness in global spot bullion prices. After spot gold gave up its $4,400 per ounce threshold, gold and silver futures plunged on the Multi Commodity Exchange (MCX) on August 13, 2026. MCX gold prices extended their losses by Rs 1,300 to Rs 1,700, falling to trade around Rs 1,53,950 per 10 grams. Meanwhile, silver faced a sharper decline, plunging by Rs 2,700 to reach approximately Rs 2.35 lakh per kilogram. The correction comes as market participants assess incoming US inflation data, interest rate expectations, and shifts in crude oil prices.
Global Spot Gold and Silver Pullback
In the international market, spot gold declined by nearly 1% to trade around $4,373 per ounce. Gold had previously scaled a ten-week high before profit-taking emerged at elevated levels. Spot silver also recorded a steep drop of nearly 1%, tumbling below the $65 per ounce level. The pullbacks reflect heightened caution among global traders as they await upcoming US producer inflation figures for clearer insights into underlying price trends.
US Inflation Rates and Federal Reserve Rate Expectations
Economic data released earlier confirmed that US consumer inflation slowed for the second straight month in July, landing at 3.4% on an annual basis. On a month-on-month basis, consumer prices edged up by just 0.1%. Market attention has now turned toward the producer price index (PPI) release to gauge whether inflationary pressures are continuing to moderate.
Following the consumer price data, financial markets recalibrated their expectations for Federal Reserve policy. Traders currently estimate around a 40% probability that the Fed will enact a 25 basis point interest rate hike at its September meeting, down from nearly 50% recorded a day earlier. The shifting interest rate outlook has added to the volatility across precious metals.
Crude Oil Eases Amid Strait of Hormuz Standoff
The downturn in bullion occurred despite a retreat in crude oil benchmarks. US WTI crude fell 1% on Thursday, sliding below $83 per barrel and snapping a five-day rally. Brent crude similarly dropped 1% to trade below $89 per barrel, struggling around $88 after a six-day advance.
Oil markets reacted as investors evaluated the chances of an agreement to reopen the Strait of Hormuz. President Donald Trump stated that the United States maintained total control over the strategic waterway. However, diplomatic negotiations between Washington and Tehran remain deadlocked, accompanied by escalating rhetoric. With US military actions yielding no immediate capitulation from the Iranian regime, the Trump administration is moving toward applying further economic pressure.
Detailed MCX Trading Levels and Intra-day Movements
Trading across the MCX commodity board remained entirely in the red. Earlier in the session, MCX gold traded lower by Rs 379 or 0.24% at around Rs 1,54,503 per 10 grams, moving between an intraday high of Rs 1,55,145 and an intraday low of Rs 1,54,250. Selling deepened later in the day, taking quotes down toward Rs 1,53,950.
MCX silver experienced even heavier losses compared to gold. In mid-session trades, silver lost Rs 1,235 to trade near Rs 2,36,600 per kilogram, close to its intraday low of Rs 2,36,138, after touching an early peak of Rs 2.38 lakh. The drop subsequently expanded to Rs 2,700, bringing prices to Rs 2.35 lakh per kg. Across the wider MCX complex, zinc, natural gas, and silver suffered the hardest losses with declines between 0.5% and 1%, while crude oil, lead, copper, and gold traded marginally lower.
