Gold, Silver Prices Open Lower As Fed Rate Hike Fears Weigh On Bullion

Gold and silver prices opened sharply lower on Wednesday amid concerns over possible US Federal Reserve rate hikes, which weighed on global bullion sentiment.

On the Multi Commodity Exchange (MCX), gold futures for August delivery fell 1.51 per cent to ₹1,50,140 per 10 grams at 12:15 PM. Silver futures for July also declined nearly 1 per cent to ₹2,36,239 per kg.

According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold dropped to ₹1,48,429 per 10 grams from ₹1,52,519 at the previous session’s opening.

In international markets, spot gold slipped 1.8 per cent to $4,187.59 per ounce, hitting an 11-week low, while US gold futures for August delivery fell to $4,213.40.

Analysts said a stronger US dollar and rising crude oil prices, driven by renewed geopolitical tensions in the Middle East, added to inflation concerns and reinforced expectations that the Federal Reserve may keep interest rates higher for longer.

As the dollar strengthened, gold became more expensive for holders of other currencies.

Market data from the CME FedWatch tool indicated that traders are pricing in more than a 70 per cent probability of a US Fed rate hike by December.

On MCX, analysts said gold faces immediate resistance around ₹1,52,000 per 10 grams.

A sustained move above this level is needed to build momentum towards ₹1,54,000–₹1,55,000, while the market shows cautious sentiment.

Silver holds support between ₹2,32,000 and ₹2,34,000 per kg, reflecting volatile trading conditions. It faces resistance in the ₹2,38,000–₹2,40,000 range, while a decisive break below ₹2,32,000 could trigger further selling pressure.

Also Read: Crude Oil Prices Rise As US-Iran Tensions Rekindle Supply Disruption Fears