Gold Prices Tumble on MCX Amid Strong Dollar
Gold prices witnessed a sharp decline of over 1% on the Multi Commodity Exchange (MCX) on Wednesday, June 23, 2026, as the dollar index remained steady above the 100 mark. The drop in bullion prices was in line with global trends, where a stronger dollar made gold more expensive for holders of other currencies.
On MCX, gold futures for August delivery fell by ₹545, or 1.12%, to trade at ₹48,200 per 10 grams. Similarly, silver futures for July delivery plummeted by ₹7,200, or 7.5%, to ₹88,500 per kilogram.
Dollar Index Steady Above 100 Pressures Bullion
The dollar index, which measures the greenback against a basket of six major currencies, held steady above the 100 level, exerting pressure on gold and other dollar-denominated commodities. A stronger dollar reduces the appeal of gold as an alternative investment.
According to analysts, the US Federal Reserve's hawkish stance on interest rates has supported the dollar. The Fed has signaled further rate hikes to combat inflation, which has boosted the dollar's safe-haven appeal over gold.
Global Gold and Silver Trends
Internationally, spot gold fell 1.2% to $1,820 per ounce, while US gold futures dropped 1.3% to $1,825. Silver also took a hit, with spot silver declining 6.8% to $20.50 per ounce. The sharp fall in silver was attributed to its higher volatility and industrial demand concerns.
Market participants are now awaiting key US economic data, including initial jobless claims and GDP numbers, which could provide further direction for the dollar and bullion prices.
City-Wise Gold Rates in India
In the domestic market, gold rates varied across major cities. In Delhi, 24-carat gold was priced at ₹48,350 per 10 grams, while 22-carat gold was at ₹44,300. In Mumbai, the rates were ₹48,200 for 24-carat and ₹44,150 for 22-carat. Chennai saw 24-carat gold at ₹48,450 and 22-carat at ₹44,400. Kolkata quoted 24-carat gold at ₹48,250 and 22-carat at ₹44,200.
Silver prices also varied, with Delhi reporting ₹88,800 per kg, Mumbai ₹88,500, Chennai ₹89,200, and Kolkata ₹88,600.
Outlook for Bullion
Analysts expect gold to remain under pressure in the near term as the dollar continues to strengthen. However, any escalation in geopolitical tensions or a slowdown in the US economy could trigger a rebound. Silver, being more volatile, may see further downside if industrial demand weakens.
Investors are advised to monitor the dollar index and US interest rate decisions for cues. The upcoming Jackson Hole symposium could provide clarity on the Fed's policy path.
