Silver MCX futures decline by 2%, yet hover above ₹2.66 Lakhs per kilogram.

18 May 2026 , 12:08 PM

Gold and silver prices remained under pressure today, as global investors turned cautious ahead of a high-stakes meeting between Donald Trump and Xi Jinping in Beijing. Rising US inflation, a stronger dollar, and higher Treasury yields weighed on bullion sentiment, while ongoing geopolitical tensions in the Middle East continued to provide some safe-haven support.

Domestic bullion futures on the Multi Commodity Exchange (MCX) also witnessed sharp declines, with both gold and silver prices trading lower amid concerns over tighter global monetary policy and India’s latest import restrictions.

Gold Prices Stay Flat Amid Global Uncertainty

Gold prices traded largely flat in Asian markets as traders closely monitored the upcoming US-China discussions, which are expected to focus on:

• US-China trade relations
• The Iran conflict
• Global supply chain disruptions

At the same time, geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, continued to support safe-haven demand for precious metals.

However, stronger-than-expected US inflation data limited gains in bullion. US producer inflation reportedly rose at its fastest pace since 2022, increasing market expectations that the US Federal Reserve may keep interest rates elevated for longer.

Higher interest rates generally reduce the attractiveness of non-yielding assets such as gold, leading to profit-booking in precious metals.

Strong US Dollar & Treasury Yields Pressure Bullion

Another major factor weighing on gold prices was the strength in the US dollar. The US Dollar Index remained near a two-week high, while US 10-year Treasury yields climbed to their highest levels since July.

A stronger dollar makes gold more expensive for overseas buyers, often reducing international demand.

Additionally, rising crude oil prices have intensified global inflation concerns, leading markets to believe the Federal Reserve may continue with a tighter monetary stance.

MCX Gold & Silver Prices Today

Domestic bullion futures traded sharply lower on Monday amid weak global cues and growing concerns over inflation and geopolitical instability.

MCX Gold Price Today

MCX Gold June 2026 futures fell by ₹1,000 or 0.6% to trade at ₹1,57,547 per 10 grams.

MCX Silver Price Today

MCX Silver July 2026 futures declined by ₹5,643 or 2.1% to ₹2,66,243 per kilogram.

The decline followed rising geopolitical tensions after reports of a drone strike that triggered a fire at a UAE nuclear facility, increasing fears of broader instability in the region.

India Tightens Gold & Silver Import Rules

India has also taken significant steps to curb bullion imports.

The government recently increased import duties on gold and silver from around 6% to nearly 15%, taking the effective total duty including IGST to above 18%.

In another major move, silver imports have now been shifted from the “free” category to the “restricted” category, meaning importers will require government licences for importing silver into the country.

Government’s Key Objectives

The government’s latest measures aim to:

• Reduce foreign exchange outflows
• Control non-essential imports
• Manage the trade deficit

Exemptions Under New Rules

Certain entities remain exempt from the restrictions, including:

• 100% Export Oriented Units (EOUs)
• SEZ units, provided products are not sold domestically

Analysts believe the higher duties could weaken jewellery demand in India, one of the world’s largest consumers of gold and silver.

Major Factors Impacting Gold Prices Today

Negative Factors for Gold

• Rising US inflation
• Strong US dollar
• Higher US Treasury yields
• Expectations of prolonged higher interest rates
• Rising crude oil prices and inflation fears

Positive Factors for Gold

• Ongoing Middle East tensions
• Safe-haven buying demand
• Global supply chain uncertainty
• Geopolitical instability

Gold & Silver Market Outlook

The short-term outlook for bullion remains weak to volatile as investors continue to assess multiple global risks.

Market participants are closely watching:

• US Retail Sales data
• Federal Reserve commentary
• Crude oil price movement
• Middle East geopolitical developments
• US-China relations

Any signs of easing inflation or softer Fed commentary could support gold prices, while continued strength in the dollar and bond yields may keep pressure on bullion markets in the near term.

Summary

Gold and silver prices remain caught between safe-haven demand and macroeconomic pressures. While geopolitical tensions and global uncertainty continue to support bullion, rising inflation, stronger Treasury yields, and aggressive import restrictions in India are limiting upside momentum.

Investors are expected to remain cautious ahead of crucial US economic data and geopolitical developments, making volatility in precious metals likely in the coming sessions.

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