MCX bullion under pressure: Gold falls nearly 1%, silver drops over 3%

Domestic precious metal prices traded lower on Friday (May 15), tracking weakness in global markets as rising crude oil prices, elevated US bond yields and a stronger dollar weighed on bullion sentiment.

MCX gold futures for June delivery slipped 0.89% to ₹1.60 lakh per 10 grams, while MCX silver futures for July delivery fell 3.46% to ₹2.81 lakh per kilogram.

The decline mirrored losses in international markets, where COMEX gold and silver remained under pressure amid concerns that higher energy prices could keep inflation elevated and delay interest rate cuts by the US Federal Reserve.

Brent crude prices

have climbed more than 5% this week and continued to hover above $106 per barrel amid disruptions linked to the Iran conflict and tensions around the Strait of Hormuz. The surge in oil prices has strengthened inflation worries globally, supporting the dollar and pushing US Treasury yields higher.

A stronger dollar has also reduced the appeal of bullion for overseas buyers, while rising bond yields increased the opportunity cost of holding non-yielding assets such as gold.

According to Ravi Singh, Chief Research Officer (Research) – Master Capital Services, MCX gold continues to remain in a broader bullish structure despite the recent decline, with the market entering a fresh price discovery phase.

He said the metal continues to maintain a “higher high, higher low” pattern on daily charts, indicating that the primary uptrend remains intact. He identified ₹1.59 lakh per 10 grams as the key near-term support level and ₹1.65 lakh per 10 grams as the immediate resistance zone for MCX gold.

Singh added that domestic bullion prices are showing resilience even as global markets adjust to stronger US economic data and shifting geopolitical developments.

Meanwhile, analysts at Axis Securities said COMEX silver witnessed sharp profit booking after stronger-than-expected US inflation data reduced expectations of an early Federal Reserve rate cut, weighing on sentiment across precious metals.