Archive · 14 Aug 2026
Gold, silver prices drop 1% on inflation, rate hike fears
Gold and silver are precious metals that people buy to keep their money safe.
On Friday, 14 August, their prices went down by almost one percent.
That happened in early deals at an Indian market called the MCX.
Prices fall when people worry that making money from them will get harder.
One big worry is inflation, which means things like food and fuel get more expensive.
When inflation stays high, the US Federal Reserve might raise interest rates, and that makes gold less attractive.
Some people also sold gold to take profits after prices had gone up a lot.
At the same time, oil prices rose a little because of a conflict in the Middle East.
The US Navy is blocking ports in Iran, which makes oil shipping uncertain.
Experts disagree on what happens next — some think gold prices may fall more, while others think they could recover.
Gold and silver prices fell by up to 1% in early deals on the MCX on Friday, 14 August, as inflation concerns fuelled expectations of monetary tightening.
MCX gold October futures traded 0.69% lower at ₹1,52,406 per 10 grams, while silver September futures slipped 0.85% to ₹2,33,455 per kg.
US gold futures for December delivery declined 1% on profit-taking after gold hit an over-two-month high in the previous session.
Brent crude rose above $87 per barrel amid Middle East conflict and Strait of Hormuz uncertainty, with US Defense Secretary Pete Hegseth saying the naval blockade of Iranian ports can continue 'indefinitely'.
US CPI rose 0.1% month-on-month in July (3.4% year-on-year), and markets are divided on Fed rate hikes, pricing roughly a one-in-three chance of a September hike.
- Who
- Traders on India's Multi Commodity Exchange (MCX), US Federal Reserve policymakers, and US Defense Secretary Pete Hegseth.
- What
- Gold and silver prices fell up to 1%, pressured by inflation concerns, rate hike speculation and profit-taking.
- When
- Friday, 14 August, in early deals.
- Where
- On the MCX in India and in US futures markets.
- Why
- Sticky inflation, oil price volatility from the Middle East conflict and expectations of Federal Reserve monetary tightening weighed on non-yielding bullion.
Fed to Hold Rates Steady
Fed to Hike Rates
US Federal Reserve interest rate outlook
Fed to Hold Rates Steady
Softer US inflation and unchanged producer prices strengthen expectations that the Federal Reserve will hold rates steady in September, which supports non-yielding bullion.
Fed to Hike Rates
Sticky inflation, oil price volatility from the Middle East conflict and inflation above the Fed's 2% target for five years keep rate hike risks alive, with markets pricing roughly a one-in-three chance of a September hike.
- MCX Gold October Futures
- ₹1,52,406 per 10 grams (down 0.69%)
- MCX Silver September Futures
- ₹2,33,455 per kg (down 0.85%)
- US Gold Futures (December)
- Down 1%
- Brent Crude
- Above $87 per barrel (up about 0.5%)
- US CPI (July)
- +0.1% month-on-month; 3.4% year-on-year
- US Nonfarm Payrolls (July)
- Down 23,000 against expected 80,000 increase
- US Producer Prices (July)
- Unchanged
- Strait of Hormuz Blockade
- Per Al Jazeera, US Defense Secretary Pete Hegseth said Washington can continue its naval blockade of Iranian ports 'indefinitely'