Gold and Silver Prices Crash as US Fed Signals Potential Rate Hikes
Precious metal prices witnessed a sharp correction on the Multi-Commodity Exchange (MCX) this Thursday, triggered by hawkish signals from the US Federal Reserve. As traders brace for possible interest rate hikes later this year, both gold and silver have seen significant intraday declines.
The Fed Factor: Why Precious Metals Are Retreating
The primary driver behind the current market volatility is the stance of the US Federal Reserve. While the Fed chose to keep the policy rate unchanged in its latest meeting—maintaining the current range of 3.50%-3.75%—the underlying projections have spooked investors. According to recent data, nine out of the 19 US policymakers now believe a rate hike will be necessary before the end of the year.
In the world of commodities, rising interest rates generally exert downward pressure on gold. When the Fed raises rates, yields on interest-bearing assets like bonds and deposits increase, offering investors better returns elsewhere. This makes non-yielding assets like gold relatively less attractive, leading to the sell-off we are currently witnessing.
MCX Market Snapshot: Sharp Declines in Gold and Silver
The domestic impact on the Multi-Commodity Exchange (MCX) has been substantial. Silver futures for July 2026 delivery saw a massive drop of Rs 6,298, or 2.5%, settling at Rs 2,45,509 per kg. Gold futures for August 2026 delivery were not spared either, declining by Rs 1,600 to reach Rs 1,52,304 per 10 grams.
Interestingly, this downward trend occurred despite a separate bullish signal: easing oil prices following a US-Iran interim agreement. Usually, lower oil prices reduce inflation concerns, which can boost precious metal demand, but the "Fed fear" proved to be a much stronger market force this session.
Expert Technical Outlook and Trading Strategy
Market analysts suggest that while the immediate trend is bearish, specific support levels are emerging. Manoj Kumar Jain of Prithvi Finmart provides the following technical levels for traders:
Per l'oro:
- Livelli di supporto: Rs 1,52,800 – Rs 1,52,000
- Livelli di resistenza: Rs 1,54,400 – Rs 1,55,500
- Strategia: Dopo aver toccato i recenti massimi di Rs 1,54,134, si consiglia agli investitori di realizzare i profitti sulle posizioni long esistenti e attendere nuove opportunità di ingresso vicino alla fascia Rs 1,51,100–1,50,000.
Per l'argento:
- Livelli di supporto: Rs 2,48,000 – Rs 2,44,400
- Livelli di resistenza: Rs 2,55,000 – Rs 2,58,800
- Strategia: Cercare opportunità di acquisto nella fascia Rs 2,48,800–2,46,000, mantenendo uno stop loss rigoroso al di sotto di Rs 2,43,300.
Punti chiave
- Influenza della Fed: La prospettiva di aumenti dei tassi di interesse negli Stati Uniti sta rendendo l'oro e l'argento meno attraenti rispetto agli asset che generano interessi.
- Volatilità significativa: L'argento ha registrato un netto calo del 2,5% sull'MCX, mentre l'oro è sceso di Rs 1,600 per 10 grammi.
- Consigli di trading: Gli esperti raccomandano di realizzare i profitti sulle posizioni attuali e di attendere correzioni di prezzo verso i livelli di supporto stabiliti prima di effettuare nuovi ingressi.