Why Are Gold and Silver Prices Falling? Oil, Inflation and Rate Worries Weigh
- 23rd October 2026
- 02:00 PM
- 3 min read
Summary
Gold and silver prices fell on 23 October 2026 as high crude oil prices, inflation concerns and expectations of higher interest rates weighed on bullion. On the Multi Commodity Exchange (MCX), December gold futures fell 0.49% to ₹1,42,609 per 10 grams. December silver futures dropped 1.87% to ₹1,95,859 per kg. International gold traded at $4,023.73 an ounce.Mumbai | 23 October 2026
Bullion is gold and silver held or traded in bulk, as bars, coins or exchange contracts. Both metals are under pressure as crude oil stays high amid tensions in West Asia over the US-Iran conflict. International gold has fallen 5.89% over the past month, while silver has lost 15.49%.
How Much Have Gold and Silver Prices Fallen Today?
On MCX, December gold futures traded at ₹1,42,609 per 10 grams, down ₹700 from the previous close of ₹1,43,309. December silver futures fell ₹3,740 to ₹1,95,859 per kg. Silver touched ₹1,92,800 during the day, the lowest price for this contract since it began trading. MCX silver is now below ₹2 lakh per kg, about 55% under this year’s high of ₹4.27 lakh.
| Market | Price | Change on the day |
| MCX gold (December futures) | ₹1,42,609 per 10 grams | -0.49% |
| MCX silver (December futures) | ₹1,95,859 per kg | -1.87% |
| International gold | $4,023.73 per ounce | -0.03% |
| International silver | $53.937 per ounce | -1.19% |
Why Are Gold and Silver Prices Falling?
Several factors are pushing bullion lower.
- Crude oil: Brent crude traded at $113.366 a barrel, up 0.17%, after touching a 5-month high recently. Tensions in West Asia have kept energy prices high.
- Inflation: Stubborn inflation, driven largely by high energy costs, has strengthened expectations that interest rates will stay higher for longer.
- Interest rates: Gold and silver pay no interest. When rates stay high, assets that pay interest become more attractive than bullion.
- Profit-booking: Investors have sold to lock in gains after the earlier rally, adding to the fall in silver.
Gold is heading for its steepest drop in four months.
How Do the Dollar and Rupee Affect Bullion Prices?
Gold and silver are priced in US dollars worldwide. A stronger dollar makes them costlier for buyers using other currencies, which can reduce demand. The dollar index, which tracks the dollar against major currencies, traded 0.04% higher at 101.64.
In India, the rupee also affects domestic bullion prices. The dollar rose 0.49% against the rupee to 95.159, as rising oil prices and demand for dollars weighed on the Indian currency.
How Far Is Gold From Its Record High?
International gold is 26% below its all-time peak. On MCX, spot gold hit a record ₹1,76,306 per 10 grams on 29 January and fell to ₹1,47,878 three days later. It dropped to this year’s low of ₹1,39,843 on 25 June and hovered near ₹1,42,800 on 22 October.
Outlook
The US Federal Reserve meets on 27 and 28 October. Personal Consumption Expenditures (PCE) inflation data, a key US inflation measure, is due next week. The government has approved imports of 6,500 tonnes of silver to meet festive demand. Gold exchange-traded fund (ETF) flows, geopolitical developments and rupee movements can also influence domestic prices.
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