Gold and silver futures on the Multi Commodity Exchange (MCX) retreated on Tuesday as investors locked in profits after a recent rally. The decline follows a surge in global metal prices triggered by US Treasury bond buyback news. Traders are now turning their attention toward upcoming US inflation data and comments from the Federal Reserve.
Gold and silver futures on the Multi Commodity Exchange (MCX) traded lower on Tuesday, August 25, 2026, as investors opted to secure gains following a sharp rise in precious metal prices over the past few sessions. The October gold contract on the MCX shed ₹214, trading near ₹1,63,172 per 10 grams. Silver futures for September delivery saw a steeper decline of ₹1,921, trading at approximately ₹2,42,600 per kilogram.
Drivers Behind the Price Correction
The recent cooling in prices was largely expected after a prolonged rally that had pushed precious metals to three-month highs. The earlier upward trend was fueled by an unexpected announcement from the US Treasury regarding the buyback of long-term government bonds, which triggered concerns about currency stability and national debt levels. With prices reaching these elevated levels, many traders chose the current session to book profits rather than initiating new positions.
Global Trends and Macroeconomic Factors
International markets followed a similar path, with gold on the Comex platform trading around $4,680 per ounce, while silver hovered near $67.80 per ounce. Beyond profit-taking, the market is currently bracing for volatility due to several global events. Investors are waiting for upcoming US inflation data, specifically the Personal Consumption Expenditures (PCE) report, and a scheduled speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole conference.
Risks and Outlook
The environment for precious metals remains sensitive to macroeconomic shifts. Rising bond yields often pressure non-yielding assets like gold, as they increase the opportunity cost of holding the metal. Furthermore, geopolitical tensions, including potential US sanctions on Iran, are keeping traders cautious. In India, the market is also navigating the high-stakes monthly Futures and Options (F&O) expiry on the National Stock Exchange, which frequently increases short-term volatility. For those tracking these assets, the most important updates will be the upcoming US inflation readings and any signals from the Federal Reserve regarding interest rate paths, as these will directly influence the direction of commodity prices.