Gold Plunges: MCX Sees Significant Drop Amid Global Cues and Fed Focus on July 28, 2026

Gold and silver prices witnessed a sharp decline across Indian markets on July 28, mirroring a global downward trend. MCX gold futures plunged significantly, with reports indicating a fall of ₹1,200, bringing futures down to ₹1,41,850. Silver also followed suit, dropping nearly 2% or ₹6,543 per kilogram. This notable downturn was primarily driven by a stronger US dollar, prevailing uncertainty surrounding the upcoming US Federal Reserve decision, and easing geopolitical tensions between the US and Iran.

Globally, Comex gold and silver slid as the firm dollar made the yellow metal more expensive for holders of other currencies. The market's attention was squarely focused on the anticipated Fed meeting, with investors speculating on future interest rate movements, which typically impacts non-yielding gold. Adding to the downward pressure, reports of an easing in US-Iran tensions cooled safe-haven demand for gold, leading to a drop of around ₹750 per 10 grams in some markets. Despite gold forecasts generally falling, expectations of continued central bank buying are anticipated to provide some cushion against a steeper retreat. The Indian Rupee also firmed up, further contributing to the pressure on domestic gold prices.

For Indian investors and jewelry shoppers, today's price correction presents a mixed bag. While some analysts believe gold may remain range-bound in the near term, others suggest that the cooling prices, particularly due to the US-Iran ceasefire, could encourage a pick-up in demand, especially ahead of the festive season. The World Gold Council has also weighed in on whether gold will get cheaper or more expensive, though specific details were not provided in reports. As the market awaits clarity from the Fed decision and continues to monitor global developments, buyers might find current levels more attractive for festive purchases. However, investors should remain cautious, keeping a close eye on the dollar's trajectory and central bank policies for future price direction.