Gold slips marginally in futures trade; silver rebounds on value buying

Gold prices edged lower in futures trade on Thursday (June 25) as weak spot demand and negative global cues weighed on investor sentiment. On the other hand, silver prices recovered marginally after recent heavy selling, supported by bargain buying in the domestic market.

On the Multi Commodity Exchange (MCX), gold contracts for August delivery slipped by ₹32, or 0.02%, to trade at ₹1.41 lakh per 10 grams, with a business turnover of 1,279 lots.

Analysts attributed the decline in yellow metal prices to

subdued global trends

and continued pressure from a stronger US dollar. In the international market, gold futures fell 0.35% to $3,985.43 per ounce in New York.

Silver, however, witnessed mild recovery amid value buying by traders after a sharp correction in previous sessions. MCX silver contracts for July delivery rose ₹175, or 0.08%, to ₹2.13 lakh per kilogram, with a turnover of 2,591 lots.

Market experts said the white metal attracted bargain hunters after prices dropped to multi-month lows in recent sessions. Overseas, Comex silver futures gained 0.21% to $57.53 per ounce.

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, said precious metals continue to face pressure despite easing geopolitical tensions following the US-Iran ceasefire.

“Gold and silver are extending losses amid a combination of factors including a hawkish US Federal Reserve stance, unwinding of yen carry trades, and a stronger dollar. Gold has breached the key $4,000 support level, while silver has slipped below $60,” he said.

According to Kothari, markets are closely watching the upcoming US PCE inflation data, which could provide fresh direction for bullion prices. He added that although technical indicators remain weak, oversold conditions may trigger short-covering rallies in the near term.

Sharing a similar outlook, Colin Shah, Managing Director of Kama Jewelry, described the recent decline as a “healthy correction” rather than a structural breakdown in prices.

“The correction is largely driven by dollar strength and expectations of further US rate hikes, which typically reduce the appeal of non-yielding assets like gold and silver. However, softer prices often encourage physical buying in India, especially during periods of strong consumer demand,” Shah said.

He maintained that the long-term fundamentals for precious metals remain positive despite near-term volatility.