Gold and silver prices declined by more than 1% on Tuesday as market participants remained cautious ahead of the release of the Federal Reserve's June meeting minutes, which could provide insights into the central bank's future monetary policy stance.
Gold and Silver Prices Today
On the Multi Commodity Exchange (MCX), gold futures for August delivery fell by 1.2% to ₹50,240 per 10 grams, while silver futures for September delivery dropped 1.5% to ₹61,800 per kilogram. In the international market, spot gold was down 1.1% at $1,822.31 per ounce, and US gold futures slipped 1.2% to $1,823.50 per ounce.
According to analysts, the decline was driven by a stronger US dollar and rising bond yields, as investors repositioned ahead of the Fed minutes. The dollar index edged higher, making gold more expensive for holders of other currencies.
City-Wise Gold Rates in India
In the domestic market, gold prices varied across major cities. In Delhi, 22-carat gold was priced at ₹48,500 per 10 grams, while 24-carat gold stood at ₹49,200. In Mumbai, 22-carat gold was ₹48,300, and 24-carat was ₹49,000. In Chennai, rates were ₹48,700 for 22-carat and ₹49,400 for 24-carat. Kolkata saw 22-carat gold at ₹48,400 and 24-carat at ₹49,100.
Silver prices also differed regionally. In Delhi, silver was quoted at ₹62,000 per kilogram, in Mumbai at ₹61,800, in Chennai at ₹62,200, and in Kolkata at ₹61,900.
Federal Reserve Meeting Minutes in Focus
The Federal Reserve is scheduled to release the minutes of its June 14-15 policy meeting on Wednesday. The central bank had raised interest rates by 75 basis points, the largest hike since 1994, to combat soaring inflation. Investors are keen to gauge the Fed's outlook on future rate increases and any signs of a potential recession.
"The market is waiting for the Fed minutes to get clarity on the pace of rate hikes," said a senior analyst at a leading brokerage firm. "Any hawkish tone could further pressure gold prices, while a dovish stance might provide some support."
Impact on Bullion Market
The recent strength in the US dollar and rising Treasury yields have weighed heavily on non-yielding assets like gold. The US 10-year bond yield climbed to 3.0%, increasing the opportunity cost of holding gold. Additionally, expectations of aggressive monetary tightening have reduced the appeal of precious metals as an inflation hedge.
Market participants also digested comments from Fed officials who reiterated the need to bring inflation down to the 2% target, even if it means slowing economic growth. This has led to increased volatility in the bullion market.
