Gold futures on the Multi Commodity Exchange (MCX) dropped sharply on Thursday, June 25, 2026, to Rs 1,41,238 per 10 grams, while international prices slipped below the key psychological level of $4,000 per ounce. Analysts attributed the decline to weak global cues, including a strengthening US dollar and rising bond yields.
Price Movement and Market Reaction
The most active gold contract for August delivery on MCX was trading at Rs 1,41,238 per 10 grams, down 0.6% from the previous close. In the international market, spot gold fell to $3,985 per ounce, breaching the $4,000 support level for the first time in two weeks. Silver also witnessed a sell-off, with MCX silver futures declining by 1.2% to Rs 72,500 per kilogram.
According to market analysts, the drop was triggered by a stronger US dollar index, which rose to 104.5, making dollar-denominated commodities more expensive for holders of other currencies. Additionally, the yield on the US 10-year Treasury note climbed to 4.8%, reducing the appeal of non-yielding assets like gold.
Global Cues and Expert Views
“Gold prices are under pressure due to a combination of factors, including a robust dollar and expectations of further interest rate hikes by the Federal Reserve,” said a senior analyst at a leading brokerage firm. “The $4,000 level was a key support, and its breach could lead to further downside in the near term.”
Weak demand from major consumers like India and China also weighed on sentiment. Import data showed that gold imports into India fell by 15% in May 2026 compared to the same month last year, as high prices dampened buying interest.
Outlook and Recommendations
Despite the current weakness, some analysts believe that geopolitical uncertainties and central bank buying could provide a floor for prices. The World Gold Council reported that global central banks added 300 tonnes of gold to their reserves in the first quarter of 2026, continuing a trend of diversification away from the US dollar.
For investors, experts advise caution in the short term. “We recommend waiting for a clear trend reversal before taking fresh long positions. Support for MCX gold is seen at Rs 1,40,000 per 10 grams, while resistance is at Rs 1,43,000,” added the analyst.
The next major trigger for gold prices will be the US non-farm payrolls data scheduled for release next week, which could influence the Federal Reserve's monetary policy stance.
