MCX gold futures dropped to ₹1.42 lakh per 10 grams on July 13, 2026, as rising crude oil prices and a stronger US dollar pressured the metal. Investors are moving away from non-yielding assets toward interest-bearing alternatives amid expectations that the US Federal Reserve will keep interest rates higher for longer.
Gold prices on the Multi Commodity Exchange (MCX) faced renewed selling pressure on Monday, July 13, 2026, with August delivery futures falling by ₹1,413 to trade at ₹1.42 lakh per 10 grams. This decline marks a continuation of a downward trend, following a 2.65% drop in the previous week.
Global Factors Weighing on Prices
The weakness in precious metals is primarily driven by developments in the global energy market and US monetary policy. Heightened military tensions between the United States and Iran have led to the temporary closure of the Strait of Hormuz, a vital route for global oil shipments. The resulting spike in crude oil prices has reignited fears of sticky inflation. This scenario has reinforced market expectations that the US Federal Reserve may maintain elevated interest rates for an extended period to combat price pressures.
When US interest rates stay high, the US dollar and Treasury yields typically climb. For gold and silver, which do not generate interest or dividends, this makes them less attractive to investors compared to interest-bearing assets. While gold is historically considered a safe-haven during times of geopolitical conflict, this traditional appeal is currently being sidelined by the impact of rising yields and dollar strength.
Industrial Pressure on Silver
Silver is experiencing a dual impact, facing downward pressure both as a precious metal and an industrial commodity. Market observers have pointed to concerns regarding a potential slowdown in industrial demand, which adds to the existing volatility. Despite these near-term challenges, some institutional outlooks, including those from Tata Mutual Fund, suggest that long-term factors such as consistent central bank gold buying and rising demand for silver in sectors like renewable energy and AI hardware remain in place. Projections also point to a persistent global silver supply deficit through 2026.
Looking Ahead
The market’s focus is now shifting toward upcoming US economic data, including the Consumer Price Index (CPI) and Producer Price Index (PPI). These reports are expected to provide further clarity on the inflation trajectory. Additionally, investors will be closely tracking testimony from Federal Reserve Chair Kevin Warsh before Congress for signals regarding the future direction of interest rate policy. Any signs of cooling inflation or a shift toward a less restrictive monetary stance could help stabilize prices, while further escalations in energy costs may keep the current pressure on precious metals intact.