India’s precious metals suffer a renewed setback amid global market volatility and mixed signals from US inflation data, prompting traders to remain cautious despite weaker energy and commodity prices.
Gold and silver prices in India came under renewed pressure on August 13 as traders weighed softer US inflation data against broader weakness across commodities. On the Multi Commodity Exchange, gold slipped by nearly ₹500 to trade below ₹1.55 lakh per 10 grams, while silver lost about ₹1,300 to hover near ₹2.37 lakh per kilogram, according to the GoodReturns live market update.
The latest move came even after US consumer prices slowed for a second straight month in July, rising 3.4% from a year earlier and just 0.1% from June, which reinforced expectations that the Federal Reserve may not need to tighten aggressively again in September. Market pricing now implies about a 40% chance of a quarter-point rate rise, down from nearly 50% a day earlier, as investors await producer inflation data for further clues on price pressures.
Still, precious metals have not been able to hold on to their usual safe-haven appeal. Spot gold slipped back below $4,400 an ounce and silver traded near $65 an ounce, while declines in crude oil added to the cautious tone. Brent was below $89 a barrel and WTI remained under $83, yet traders remained wary because broader commodity markets were also under strain.
The weakness marks another turn in a volatile stretch for the metals complex. Reuters and market reports have shown that gold and silver were already under pressure in July as tensions between the US and Iran pushed oil prices higher, lifted Treasury yields and revived fears that inflation could stay sticky for longer. On July 13, MCX gold and silver both fell sharply in response, and the latest sell-off suggests traders are still balancing rate expectations, geopolitical risk and the direction of energy prices.
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