Precious metals under pressure: Check latest gold, silver rates in India and key market factors

Domestic bullion prices remained under pressure on Tuesday (June 30), with MCX gold and silver futures extending losses in line with weakness in international markets amid rising expectations of further US interest rate hikes and continued strength in the dollar.

On the Multi Commodity Exchange (MCX), gold futures for August delivery traded around ₹1.40 lakh per 10 grams, down over 1.3%, while silver futures for September delivery slipped nearly 1% to around ₹2.20 lakh per kilogram during morning trade.

The decline in domestic bullion prices mirrored the sharp correction in global markets, where spot gold fell below the key $4,000-per-ounce mark

for the first time in months. International gold prices were on track for a fourth consecutive monthly decline and their steepest monthly fall since October 2008 as investors shifted focus from safe-haven demand to higher interest rate expectations.

Analysts said persistent inflation concerns, elevated crude oil prices and expectations of tighter monetary policy by the US Federal Reserve continued to weigh heavily on precious metals.

Spot gold traded near $3,975 per ounce, while US gold futures for August delivery slipped below $3,990 per ounce. Silver also remained weak around $57 per ounce in international trade.

Market participants are currently pricing in nearly three US Federal Reserve rate hikes this year, with CME FedWatch estimates indicating a strong probability of another increase in September. A stronger dollar has further reduced the appeal of bullion by making gold and silver more expensive for holders of other currencies.

According to Ravi Singh, Chief Research Officer at Master Capital Services, MCX gold futures continue to trade under significant selling pressure and remain well below key short-term moving averages, indicating sustained bearish momentum.

He said that higher energy prices, sticky inflation and the Federal Reserve’s hawkish stance are limiting demand for non-yielding assets like gold. He also noted that growing artificial intelligence-led demand for semiconductor chips may keep inflation elevated for longer, reducing hopes of near-term rate cuts globally.

Meanwhile, crude oil prices also remained subdued amid cautious sentiment over developments related to possible Iran-US talks in Doha this week, although geopolitical uncertainty in the West Asia continues to keep markets volatile.