The sell-off in precious metals intensified in Wednesday’s trade, June 24, with both gold and silver falling to multi-month lows. A stronger US dollar, amid rising expectations of a US Federal Reserve rate hike this year, has made the metals less attractive to safe-haven buyers.
Comex gold fell by another $169 per troy ounce, slipping below the $4,000 mark for the first time since mid-November to hit $3,980. The decline widened its losses for June to 13%, putting it on track for its biggest monthly fall in more than a decade if the weakness persists through the month.
The precious metal had posted double-digit gains in each of the previous three years, more than doubling in price as central banks, money managers and retail investors piled into the trade.
Silver futures declined by $4 per ounce to $58. The white metal was last seen around these levels in December 2025. Since the start of the war in late February, gold has lost 24%, while silver has declined 38%, reflecting a bear-market trend.
Gold and silver both started the year on a strong note, with the two metals rising to historic highs in January. However, the rally has since lost momentum, with selling accelerating after the war broke out in late February.
Hawkish Fed stance adds pressure on precious metals
Although oil prices are now declining as the US and Iran are reportedly working towards a permanent peace deal, new surprised markets with a hawkish tone at his first rate-setting meeting last week, putting further downward pressure on precious metals.
The strengthening case for a rate hike has supported demand for the US dollar globally, pushing the dollar index to its highest level in more than a year. This has made dollar-priced commodities more expensive for holders of other currencies.
In addition, higher interest-rate expectations continue to support Treasury yields and the dollar, reducing the appeal of non-yielding assets such as gold.
Several major banks have cut their gold forecasts over the past week. Goldman Sachs Group Inc. slashed $500 from its spot gold forecast and now expects bullion to end the year at $4,900 an ounce, while Deutsche Bank AG cut its fourth-quarter estimate by 17%, Bloomberg reported.
Still, one bright spot for bullion is the continued strength in central-bank demand. Monetary institutions added to their holdings at the fastest pace in more than a year during the first quarter, and survey data indicates that they intend to buy more.
“Precious metals remained under pressure from a stronger US dollar, rising real yields, and broad liquidation flows as investors reduced bullion exposure to offset losses from a sharp technology-led equity selloff. Market sentiment also weakened following the Federal Reserve’s increasingly hawkish stance under Chair Kevin Warsh, with policymakers signaling a greater willingness to maintain restrictive policy settings if inflation remains elevated,” said domestic brokerage firm Kotak Securities.
MCX gold hovers around ₹1.40 lakh; silver slips below ₹2.20 lakh
Tracking weakness in global markets, the contract on MCX fell ₹5,601 per 10 grams to an intraday low of ₹1,40,928. However, the metal recovered some of its losses and later traded lower by around ₹3,300.
Meanwhile, near-month silver futures plunged ₹8,834 per kilogram to an intraday low of ₹2,17,000. Silver prices were last seen around these levels in late March.
With Wednesday’s decline, silver’s month-to-date losses widened to 17.60%, wiping out all the gains recorded in May. From its record high of ₹4,57,328 per kg, the metal has now fallen by nearly ₹2.40 lakh, or about 52%.
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