Gold, silver decline as markets price in more US rate hikes

Gold and silver prices declined sharply in early trade on Tuesday (June 30), extending recent losses as expectations of further US interest rate hikes and a stronger dollar weighed on investor sentiment.

COMEX Gold was trading at $3,981.50 per ounce, down $57.40 or 1.42%, after touching an intraday low of $3,955.40 an ounce. The metal had previously settled at $4,032.50 an ounce.

COMEX Silver also slipped, falling 1.38% to $57.375 per ounce after hitting a low of $57.035 an ounce during the session.

Market sentiment remained pressured by expectations that the US Federal Reserve could continue tightening monetary policy to control inflation. Traders are currently pricing in three interest rate hikes this year, with CME FedWatch data indicating a 63% probability of a September hike.

A stronger U.S. dollar further dampened bullion demand by making precious metals more expensive for holders of other currencies.

Geopolitical developments in the Middle East continued to remain in focus. While tensions between Iran and the United States persisted, hopes of diplomatic engagement reduced some safe-haven buying interest in gold. Iranian and US negotiating teams are expected to meet in Doha, although Iran stated that no formal meeting had been scheduled.

Investors are now awaiting key US economic data, including ADP employment numbers and nonfarm payroll figures due later this week, for further clarity on the Federal Reserve’s policy direction.

Commenting on the market trend, Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association, said gold has now extended its losing streak to four consecutive weeks and remains nearly 30% below its January 2026 record high of $5,597 an ounce.

He noted that persistent inflation concerns and hawkish commentary from Federal Reserve Chair Kevin Warsh have reinforced expectations of tighter monetary policy. According to Kothari, rising crude oil prices above $70 per barrel

have also added to inflation worries, limiting support for precious metals.

Kothari added that key support for gold is currently seen in the $3,950–$4,000 an ounce range, while silver has weakened significantly, shedding nearly 10% on COMEX in recent sessions.

-With Reuters inputs