If you have been planning to buy gold or silver, the timing could now work in your favour. On Wednesday, the third trading day of the week, precious metals tumbled sharply in both domestic and global markets and dropped to their lowest levels in several months. The biggest reasons behind the slide are a steadily strengthening US dollar and fresh worries that interest rates could rise again.
How Far Domestic Prices Fell
On the Multi Commodity Exchange (MCX), silver took the hardest hit during Wednesday's session. The July delivery contract slipped 3.9%, or roughly 8,829 rupees, to a low of 2,17,005 rupees per kilogram. Gold fared no better. The August 2026 delivery contract dropped 3.8%, or about 5,601 rupees, to land at 1,40,928 rupees per 10 grams.
Gold Slides in Global Markets Too
The fall was not limited to India. Gold cracked on the international COMEX market as well, sinking 169 dollars per troy ounce to 3,980 dollars per troy ounce. Most strikingly, this was the first time since November that gold dipped below the key psychological level of 4,000 dollars.
So far in June, gold has shed nearly 13%. If the same trend holds till the end of the month, it could turn out to be the steepest monthly decline in more than a decade. Silver matched gold step for step in this slump. On COMEX, silver fell about 4 dollars per ounce to 58 dollars per ounce, its lowest level since December 2025. Measured from the end of February, silver has now dropped around 38% and gold close to 24%.
Why the Sudden Sell-Off
According to market experts, the relentless strength in the US dollar and the tough stance of the US Federal Reserve are weighing heavily on precious metals. The market fears the Fed may raise interest rates further to rein in inflation. When rates are high, investors tend to move away from non-yielding assets like gold, and that pulls down demand.
What Lies Ahead
Market watchers believe gold and silver could stay under pressure for now. All eyes are on upcoming US economic data and statements from Federal Reserve officials. If the dollar keeps its strength and there are signals of higher rates, precious metals could weaken further. That said, for long-term investors this very dip could prove to be a good buying opportunity.
