Gold prices in India fell sharply on Wednesday, with MCX gold slipping below ₹1.5 lakh per 10 grams. Silver prices also dropped significantly, crashing by ₹4,500 per kilogram. This decline followed a steep slump in global precious metal prices, driven by renewed fears of interest rate hikes due to persistent high inflation, according to livemint.com.
The price drop came as investors reacted to global economic signals indicating that inflation remains a concern, prompting central banks to consider tightening monetary policies. The fall in gold and silver prices on the Multi Commodity Exchange (MCX) reflects these broader market anxieties. Ankit Gohel, Deputy Chief Content Producer at Livemint, highlighted that the decline is linked to inflation worries fueling expectations of further interest rate increases.
This movement in precious metal prices is significant because gold and silver are traditionally seen as safe-haven assets during inflationary periods. The current price correction suggests that markets are pricing in the possibility of tighter monetary conditions, which can reduce demand for these metals. The latest drop contrasts with earlier trends where gold prices had been supported by inflation fears, marking a shift in investor sentiment.
The MCX gold price falling below ₹1.5 lakh per 10 grams and silver's ₹4,500 per kilogram decline were recorded on June 10, 2026, reflecting the immediate impact of inflation concerns on commodity markets in India.