Gold falls Rs 2,000; silver drops Rs 5,400

MCX gold futures dropped by Rs 2,000 per 10 grams and silver futures fell Rs 5,400 per kilogram on Monday, extending a two-session slide as oil prices rose on concerns about the Strait of Hormuz. Data showed the move reflected growing rate-hike expectations that raise the opportunity cost of holding non-yielding metals.

Strait of Hormuz oil risk

Market participants pointed to higher crude as the trigger: officials said rising oil prices increase the risk of persistent inflation and the prospect of prolonged high interest rates, which weighs on precious metals. On the exchange this translated into lower headline contract levels and tighter trading ranges as buyers stepped back.

Traders and small investors pared positions in response to the shift in macro expectations, while speculators reduced longs on the MCX. Data showed the session losses were concentrated in near-month contracts; volumes and open interest will show whether the move reflects a short-term liquidation or the start of a trend.

Watch oil-market developments and central bank commentary through Friday, July 17, 2026. If oil eases by then, rate-hike bets could unwind and support a recovery in gold and silver; if crude remains elevated into the weekend, elevated rate expectations may push prices lower and prompt further selling pressure.