Gold and silver prices experienced a sharp downturn this week, with selling pressure across both domestic and international markets pulling down the value of precious metals. Growing expectations that the US central bank will raise interest rates have heightened investor caution, triggering a wave of profit-booking across bullion.
Gold Performance on MCX and COMEX
In the domestic futures market, MCX gold retreated this week to settle at ₹1,56,281, marking a 3.79% decline from its high of ₹1,64,773, while the daily candle slipped 1.71%. The weekly RSI eased to 57.67, and the daily RSI cooled sharply to 55.62, unwinding prior overbought conditions.
On the international COMEX exchange, gold pulled back near $4,530 from a peak of $4,755.0, with the daily candle down 2.88%. Ponmudi R, CEO of Enrich Money, noted that this appears to be a healthy pullback within a broader uptrend rather than a trend reversal, making support levels crucial for next week's direction.
Silver Markets Face Sharp Correction
Silver experienced a similar correction, with MCX silver closing near ₹2,36,700 following a 4.01% weekly drop from its ₹2,45,892 high. The weekly RSI slipped to 51.03 and the daily RSI cooled to 52.31 as short-term momentum faded.
In global trade, COMEX silver finished below $68.000 after touching a peak of $72.050, down 2.37% on the daily chart. Ponmudi R stated that the pullback remains corrective, and buyers stepping in around the $65.000 to $65.500 range would keep the broader recovery structure intact.
Crude Oil Gains and Monetary Policy Outlook
Meanwhile, crude oil prices gained upward momentum. US WTI crude rose 3% to trade near $85.5 per barrel, while Brent crude surged nearly 3% to around $90.5 per barrel, with gasoline prices advancing 1%. Markets are currently pricing in roughly a 57% probability of a 25-basis-point Fed rate hike in September, up from about 40% a week earlier.
Gold also faced pressure from rising oil prices following US military action targeting Iranian rocket launchers near the Strait of Hormuz. Despite this recent correction, the metal remains on track to gain over 10% for August, driven in large part by the debasement trade, according to Trading Economics.
