Gold, Silver Prices Fall For Second Day: What Is Driving The Decline In MCX Futures?

Gold and silver prices extended their decline for the second consecutive session in the MCX futures market on Friday, August 14, with large-scale profit booking, a stronger US dollar and global interest-rate concerns weighing on bullion prices.

Silver prices fall ₹3,897

Silver futures on MCX for the September 4, 2026 contract fell by ₹3,897 from the previous close of ₹2,35,447. The contract opened at ₹2,33,780 and touched a high of ₹2,33,982 and a low of ₹2,31,550 during the session.

Silver was trading at around ₹2,31,799.

Gold prices decline ₹1,543

Gold futures for the October 5, 2026 contract also remained under pressure, falling by up to ₹1,543.

The previous closing price was ₹1,53,466, while the contract opened at ₹1,53,200. It touched a high of ₹1,53,200 and a low of ₹1,51,923. Gold was trading at around ₹1,52,036.

Why are gold and silver prices falling?

US inflation and interest-rate concerns

Persistent inflation in the US has raised concerns that the US Federal Reserve could maintain a tighter interest-rate stance. Higher interest rates tend to weigh on non-yielding assets such as gold and silver, reducing their appeal to investors.

Profit booking after recent gains

Profit booking has also added pressure to bullion prices. Gold had climbed to a two-month high in the previous session, prompting investors to lock in gains after the recent rally.

Crude oil crosses $87

Volatility in crude oil has added another layer of uncertainty. Brent crude has crossed $87 a barrel amid tensions in the Middle East and uncertainty around the Strait of Hormuz.

Higher oil prices could fuel inflation, making it harder for the US Federal Reserve to move towards interest-rate cuts and putting further pressure on precious metals.

Strong US dollar weighs on bullion

The US dollar index has remained firm, making gold and silver more expensive for buyers holding other currencies. A stronger dollar can reduce global demand for dollar-denominated precious metals, adding to the pressure on prices.

With profit booking, a firm dollar, oil-price volatility and uncertainty over US interest rates all weighing on sentiment, both gold and silver remained in the red in the MCX futures market for a second straight day.