Gold and silver prices fell for the third straight day as stronger bets on a United States Federal Reserve rate hike lifted the dollar and reduced demand for precious metals.
Comex gold futures dropped by $94 to $4,108 per ounce. Silver futures plunged by $4.05 to $61.53 per ounce. Silver has already lost 18% in June and corrected nearly 50% from its January peak of $121.78.
In India, gold on MCX slipped ₹2,608 per 10 grams to ₹1,45,510 before recovering slightly. Silver fell ₹8,644 per kilogram to ₹2,25,666, erasing gains made in May.
Market sentiment turned cautious as traders now see an 86% chance of a rate hike by December compared with 61% earlier. The dollar index rose to 101.3, its highest since April last year.
Strong labour data and elevated energy prices kept inflation pressures alive. Geopolitical developments also played a role as the United States extended Iran sanctions waivers for 60 days and traffic through the Strait of Hormuz showed signs of recovery.
Analysts noted that higher interest rates reduce the appeal of gold and silver since they yield no income. Silver remains more volatile, showing sharper declines compared with gold.