Gold, silver extend losses as Fed rate concerns weigh on sentiment
New Delhi, June 30
Gold and silver prices continued to face selling pressure on Tuesday as investors and traders remained cautious over developments in West Asia and the US interest rate outlook.
On the Multi Commodity Exchange (MCX), gold futures (August) declined as much as 1.37 per cent or Rs 1,952, to hit an intraday low of Rs 1,40,450 per 10 grams at around 11:50 am.
At the last count, the yellow metal was trading at Rs 1,41,124, down over Rs 1,278, or around 1 per cent. It touched an intraday high of Rs 1,41,501, down Rs 900 or 0.63 per cent.
Meanwhile, silver futures (September) also traded lower, falling over 1 per cent or Rs 2,387 to an intraday low of Rs 2,20,247 per kg.
The white metal was trading at Rs 2,21,715 per kg, down over Rs 900, or 0.41 per cent, after touching an intraday high of Rs 2,22,293, a decline of Rs 341, or 0.15 per cent.
According to market experts, gold prices remained under pressure as investors continued to assess developments in West Asia and the US Federal Reserve's interest rate trajectory.
They said markets are pricing in three rate hikes by the US central bank this year, with the first likely in September, while investors are also awaiting the US monthly employment report for fresh policy cues.
For silver, analysts said the near-term bias remains cautious after the metal failed to hold above the Rs 2,22,500 level.
In the international market, COMEX gold was trading below the $4,000-an-ounce mark, while COMEX silver gained more than 1 per cent to trade at $59.11.
International benchmark Brent crude fell more than 1 per cent to $73.08 per barrel. Similarly, US West Texas Intermediate (WTI) crude declined over 1 per cent to trade below the $70-a-barrel mark.
— IANS
Reader Comments
Typical market overreaction to Fed comments. Gold is a long-term hedge, not something to panic over. If you bought at higher levels, just wait it out. India always has strong demand during wedding season.
Gold at 1.4 lakhs is still historically high. The Fed rate hikes are necessary to control inflation. Maybe this correction is healthy. I'm watching for a good entry point to buy more.
Silver dropping below 2.2 lakhs is worrying. My father-in-law said silver is for the common man's savings. These global factors always hit our markets hard. 😔 #IndianEconomy
Gold is a safe haven in uncertain times. The Middle East tensions should actually support prices, not drag them down. I think the market is overreacting to Fed rhetoric. Patience is key.
Interesting how oil prices are also falling. Seems like a broad commodity sell-off. For Indian consumers, lower gold prices could be a good chance to buy ahead of Diwali. Fingers crossed! 🤞
I don't understand why we always react to US policies. Gold has cultural significance in India. The government should ensure stability in domestic prices rather than relying on global cues.
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