New Delhi, June 24: Recent trends indicate a substantial decline in the prices of precious metals, specifically gold and silver. On the third trading day of the week, both metals witnessed a sharp drop, reaching their lowest levels in several months. The strength of the US dollar and fears of potential interest rate hikes by the US Federal Reserve have led investors to shy away from gold and silver, traditionally considered safe investments. This has resulted in pressure on these metals in both domestic and global markets.
From the start of trading on the Multi Commodity Exchange (MCX), gold and silver showed signs of pressure. During the day’s trading, the futures price of silver for July delivery fell by 3.9%, or ₹8,829, to reach a low of ₹2,17,005 per kilogram, down from the previous close of ₹2,25,834. On Wednesday, it opened at ₹2,22,579 per kilogram.
Meanwhile, the futures price of gold for August 2026 delivery dropped by 3.8%, or ₹5,601, to ₹1,40,928 per 10 grams, down from the previous close of ₹1,46,529. It opened at ₹1,45,000 per 10 grams on Wednesday.
This decline follows a previous trading session where both metals experienced a decrease of nearly 2%. Market experts suggest that the increased risk appetite among investors and the strength of the dollar have negatively impacted the demand for gold and silver.
In the international market, COMEX also reported a significant drop in gold prices, which fell to $3,980 per troy ounce, breaking below the crucial $4,000 mark for the first time since mid-November.
So far in June, gold prices have recorded a decline of approximately 13%. If this trend continues until the end of the month, it could mark the largest monthly drop in gold prices in over a decade.
Notably, gold had seen consistent double-digit growth over the past three years, driven by strong purchases from central banks, fund managers, and retail investors. However, current conditions have put a halt to this upward trend.
Silver prices have also seen a sharp decline, with COMEX reporting a drop to around $58 per ounce, a level not seen since December 2025. Since the onset of the war at the end of February, gold prices have fallen by about 24%, while silver prices have decreased by approximately 38%, reflecting the prevailing weak market sentiment.
At the beginning of 2026, both gold and silver performed strongly, reaching record highs in January. However, following the escalation of global tensions and the war situation at the end of February, market volatility increased. This led investors to start profit-taking, resulting in a continuous decline in precious metals.
Despite a recent easing in crude oil prices due to efforts for a lasting peace agreement between the US and Iran, the tough stance of the new US Federal Reserve Chairman Kevin Warsh has raised concerns in the markets. His signals regarding interest rates during last week’s monetary policy meeting surprised investors and added further pressure on gold and silver.
Experts believe that gold and silver prices may continue to face pressure in the near future. Investors are closely monitoring US economic data and statements from Federal Reserve officials for clearer signals regarding the future direction of interest rates.
According to market experts, the continuous strength of the dollar index has become the biggest factor pressuring gold prices. The dollar index has reached its highest level since May 2025, as the market anticipates another interest rate hike by the US Federal Reserve to control inflation.
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