Silver crashes ₹8,590/kg to a 7-month low; gold hits 2-month low. What’s driving the selloff in precious metals - Livemint

AI desk brief

Silver plunged ₹8,593/kg to ₹2,00,575, a seven-month low, while MCX gold fell ₹2,300/10g to ₹1,43,600, a two-month low. Both metals are down sharply month-to-date, with silver off 10% and gold down 3.3% as higher oil prices and firmer inflation expectations revive the case for tighter Fed policy.

The move comes as Brent jumped 3.3% to $112.38/bbl after Middle East tensions intensified, lifting energy-driven inflation risk and keeping traders biased toward further US rate hikes. CME FedWatch shows an 86% probability of a December rate increase, while next week’s Fed meeting is expected to leave rates unchanged; October 29 PCE inflation data is the next key catalyst.