Gold slips about 1% on MCX; silver tumbles 2% as dollar firms and Fed hike bets build
AI Market Summary
Gold and silver weakened as a stronger US dollar, rising Treasury yields, and firmer Fed rate-hike expectations tightened financial conditions and increased the opportunity cost of holding non-yielding metals. The move extends a sharp quarterly drawdown in bullion, reinforcing near-term headwinds for precious metals and related positioning, particularly where currency strength and rates volatility remain elevated.
Impact level
● Medium
Affected assets
NCCOGOLD2USD/USDT-0.21%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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Early on July 1, gold futures on India's Multi Commodity Exchange (MCX) weakened, with the August contract down 0.86% at ₹141,300 per 10 grams. Silver extended losses, as the September contract fell 2.06% to ₹223,850 per kilogram.
Spot prices posted steep declines through June. Gold slid about 10% over the month to ₹140,864 per 10 grams, while silver dropped nearly 15% to ₹225,125 per kilogram, marking gold's worst quarterly performance since 2013.
The sell-off has been driven by a stronger U.S. dollar, rising U.S. Treasury yields and growing market expectations that the Federal Reserve will keep raising interest rates.
