National News
MCX Gold and Silver Experiencing Downward Pressure Amid Macroeconomic Headwinds
MCX Gold and Silver Face Tactical Bearish Pressures from Macro-Geopolitical Synergies, Yet Structural Uptrends Offer Opportunistic Entry Points Above Core Supports
MCX Gold and Silver markets are experiencing downward pressure amid escalating geopolitical tensions and macroeconomic headwinds. This report provides a strategic analysis of current dynamics, leveraging real-time data for informed stakeholder decision-making.
Executive Summary
The MCX Gold futures have dipped below the pivotal Rs 1.51 lakh threshold per 10 grams, reflecting a 0.31% decline to Rs 1,49,950 in early trading on April 24, 2026, while Silver hovers around Rs 2.40 lakh per kg with a 0.56% drop to Rs 2,40,168. These movements stem from heightened US-Iran hostilities at the Strait of Hormuz, bolstering crude oil prices and inflationary expectations, which in turn elevate the opportunity cost of non-yielding bullion assets.
Market Performance Overview
- Gold Pricing Dynamics: MCX Gold May futures opened lower at Rs 1,49,950, recovering marginally from sub-Rs 1.51 lakh lows after prior session gains to Rs 1,50,750; spot international gold trades below $4,700/oz.
- Silver Pricing Trajectory: MCX Silver May futures at Rs 2,40,168, down from Rs 2,42,213, with intraday lows near Rs 2,39,200 amid a slower selloff pace versus recent sharp declines.
- Volatility Metrics: Weekly declines accelerated by US Dollar strength (up ~1%) and 10-year Treasury yield surge (>2%), compressing bullion appeal in a high-rate paradigm.
Key Risk Drivers
Elevated energy costs from US-Iran escalations, including naval blockades and mine-laying incidents at the Strait of Hormuz, have intensified inflationary risks and fueled speculation of prolonged elevated interest rates by central banks. President Trump’s directives for US Navy interventions and indefinite ceasefire extensions underscore persistent geopolitical volatility, indirectly pressuring bullion as a safe-haven amid dollar dominance.
Strategic Outlook and Recommendations
Bullish momentum persists in medium-term technicals, with Gold targeting Rs 1.63 lakh and Silver Rs 2.80 lakh if supports hold, though near-term headwinds from yield curves and crude spikes warrant hedging strategies. Stakeholders should prioritize portfolio rebalancing toward diversified yield-bearing alternatives while monitoring Hormuz developments for pivot reversals.
MCX Gold and Silver face tactical bearish pressures from macro-geopolitical synergies, yet structural uptrends offer opportunistic entry points above core supports—positioning for volatility-normalized alpha generation.
National News
Gold Industry Proposes New Strategy To Cut Imports and Boost Local Economy
Precious Metals Refineries Forum (PMRF) Has Proposed A Two-Track System To Manage Gold More Efficiently
Following Prime Minister Narendra Modi’s call to reduce gold imports and foreign travel, major Indian bullion and jewellery bodies have submitted a new plan to the government and the Reserve Bank of India (RBI). The strategy aims to lower the nation’s trade deficit by tapping into the estimated 30,000 tonnes of gold sitting in Indian households.
This move comes after India’s gold imports jumped 24% to a record $71.9 billion in the 2025-26 financial year, with over 721 tonnes of gold brought into the country.
The New Strategy: Two Separate Systems
The Precious Metals Refineries Forum (PMRF) has proposed a two-track system to manage gold more efficiently:
- For Exporters:Â Imported gold should be strictly saved for jewellery exporters using one-year Gold Metal Loans (GML).
- For Local Buyers:Â Domestic demand should be met entirely by recycling household gold. This gold would be collected from citizens, refined locally, and sold back through jewellers and retailers.
Under this plan, people who deposit their idle gold could earn 2% to 2.5% interest, while businesses taking gold loans would pay an interest rate of 3% to 4%.
Fixing Why Past Schemes Failed
Previous government gold schemes failed to gain traction primarily because they left out local jewellers and lacked a proper banking structure. Without a joined-up system, institutions faced high financial risks from changing gold prices.
To fix this, trade bodies are calling for a complete system that includes:
- Direct involvement of trusted local jewellers. The schemes did not take off in the past because jewellers were not part of them. About 10% to 20% of family gold is held as bars or coins.
- Strong bank backing and secure storage vaults across the country.
- Tax incentives, such as removing the 3% GST loss when physical gold is converted into Electronic Gold Receipts (EGR), and offering income tax relief on the interest earned.
Industry Support
Industry experts say a smooth system is already possible. Collection and purity testing centres have confirmed that collected household gold can be processed within 48 hours and safely moved to secure, bank-approved vaults.
Representatives from the Indian Bullion and Jewellers Association (IBJA) recently held discussions with RBI officials to fast-track these changes.
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