Indian Gold, Silver Prices Tumble on Hawkish Fed Comments
Gold and silver futures in India have corrected following hawkish comments from US Federal Reserve Chair Kevin Warsh about potential interest rate hikes in September. This shift in sentiment comes after a three-week rally, with investors now closely watching key technical support levels on the MCX.
Precious metals have faced a sudden pullback in the Indian commodity markets, snapping a three-week winning streak. The price decline follows Warsh's remarks suggesting the possibility of an interest rate hike in September, increasing investor expectations of tighter monetary policy in the US.
Gold and silver often see reduced demand when interest rates rise and the US Dollar strengthens. Domestic futures on the MCX have reflected this global cooling, with gold trading near ₹1,56,400 per 10 grams and silver futures moving down to around ₹2,36,651 per kilogram.