Gold futures on the Multi Commodity Exchange (MCX) dropped sharply in early trade on June 29, 2026, tracking weak global cues and a stronger dollar. The August delivery contract fell by Rs 782, or 0.54 per cent, to Rs 1,43,380 per 10 grams, with a business turnover of 1,592 lots.
Silver Futures Decline
Silver futures also witnessed a decline. The July contract for silver on MCX traded lower by Rs 1,200, or 0.54 per cent, at Rs 2,22,000 per kilogram. The drop mirrored the trend in gold as investor sentiment turned cautious ahead of key economic data.
According to market analysts, the decline in precious metals was driven by a firmer US dollar and rising bond yields, which reduced the appeal of non-yielding assets like gold and silver. Additionally, expectations of further interest rate hikes by major central banks weighed on bullion prices.
Global Market Impact
On the international front, spot gold prices dipped below $2,300 per ounce, while silver hovered near $29 per ounce. The strength in the dollar index, which climbed to a two-month high, put pressure on commodities priced in the greenback.
"The current sell-off in gold and silver is largely due to the dollar's rally and hawkish comments from central banks. Investors are now focusing on upcoming US GDP data and inflation figures for further direction," said a commodity analyst at a leading brokerage firm.
Outlook for Precious Metals
Domestic gold prices have been volatile in recent weeks, influenced by global macroeconomic factors and domestic demand. The wedding season in India typically supports gold demand, but the current price levels may dampen buying interest. Silver, often used in industrial applications, is also sensitive to economic growth prospects.
Market participants are advised to monitor global cues, including the US Federal Reserve's policy stance and geopolitical developments, for near-term price trends. As of 08:59 IST on June 29, 2026, both metals continued to trade in negative territory.
