Precious metals experienced a sharp sell-off on June 24, with Comex gold dropping below $4,000 to $3,980 and silver falling under $60 to $58. The decline was driven by a stronger US dollar and rising expectations of interest rate hikes, which pressured prices on global markets, according to livemint.com.
The sell-off intensified as major banks revised their gold price forecasts downward, reflecting concerns over the Federal Reserve's hawkish stance. On the Multi Commodity Exchange (MCX) in India, near-month gold futures fell by ₹5,601 per 10 grams, reaching an intraday low of ₹1,40,928. This movement tracked the weakness seen in global markets, highlighting the interconnectedness of domestic and international precious metals trading, livemint.com reported.
This decline in precious metals prices marks a significant shift in market sentiment, as gold and silver had been relatively stable earlier in the year. The stronger US dollar and expectations of higher interest rates typically reduce the appeal of non-yielding assets like gold and silver. The price drop also impacts investors and jewelers in India, one of the world's largest consumers of gold, affecting demand and import dynamics, according to livemint.com.
On June 24, the gold futures contract on MCX reached an intraday low of ₹1,40,928 per 10 grams, reflecting the sharp correction in prices. Silver prices also slipped below ₹60, marking a notable movement in the commodities market on this date, as detailed by livemint.com.