Strong Dollar Crushes Gold Silver Prices to 11,700 Low

Precious metals faced a brutal sell-off in Mumbai on Friday, driven by a surging dollar that sent gold and silver prices crashing as much as 11,700 rupees. The MCX floor buzzed with activity as contracts for both metals opened deep in the red. The spotlight was on silver's July 2026 futures, which shed 3.81% or 11,102 rupees from 291,102 rupees to settle around 280,000 rupees. Intraday, it probed a low of 279,458 rupees—11,644 rupees below the last close—and briefly recovered to 283,938 rupees. At 10:06 AM, it was quoted at 282,539 rupees, down 8,563 rupees or 2.94%. Not sparing gold, the June 2026 contract declined 0.73% or 1,188 rupees to 160,790 rupees from 161,978 rupees. It bottomed at 160,355 rupees intraday (down 1,623 rupees) and topped at 160,992 rupees. Latest figures showed gold at 160,540 rupees, off by 1,438 rupees or 0.89%. Internationally, the pain was evident: gold down 1.54% at 4,615 dollars/oz and silver slumping 4.47% to 81.49 dollars/oz. Technical charts indicate gold trading in a 4,600-4,750 dollar range, supported at 4,560-4,520 dollars and facing hurdles at 4,700-4,750 dollars. A resurgent dollar index, up 0.23% to a five-week high of 98.955, is the chief culprit. This key gauge tracks the greenback versus six major currencies: euro, yen, sterling, CAD, krona, and franc. As geopolitical tensions simmer without escalating, the dollar's safe-haven appeal has overshadowed gold and silver. Indian importers may find relief in cheaper global rates, but jewelers worry about festive season impacts. The road ahead hinges on upcoming US inflation data and policy hints from the Fed.