Gold & Silver Plunge to 12-Week Lows as Strong Dollar and Fed Signals Weigh on Bullion Markets.
Precious metals, notably gold and silver, have experienced significant declines, reaching a 12-week low during the trading session on June 24. Gold prices dropped 1.6%, settling at ₹1,44,114 per 10 grams, while silver fell 1.8% to ₹2,21,658 per kg. These movements reflect a broader trend of liquidation as investors reacted to a strengthening US dollar amidst easing geopolitical tensions in West Asia. The selloff marks the lowest levels for these metals since March 2026, highlighting investor sentiment shifting away from traditional safe-haven assets.
The driving forces behind this downturn appear to be multifaceted. A pronounced strengthening of the US dollar, which reached a one-year high on the dollar spot index, is creating downward pressure on precious metals markets as the dollar’s appreciation generally diminishes the allure of gold and silver. Furthermore, easing geopolitical tensions, particularly with recent developments surrounding a potential peace agreement between the US and Iran, have contributed to a reduced demand for safe-haven assets. This shift aligns with a broader selloff in tech stocks, increasing the focus on liquidity rather than on commodities like gold and silver.
Looking ahead, traders and investors should prepare for continued volatility as the dynamics of supply and demand shift in response to both currency movements and geopolitical developments. The market is particularly attuned to the upcoming decisions from the US Federal Reserve regarding interest rates, with speculation of a potential rate hike. This uncertainty will likely keep downward pressure on gold and silver prices as capital flows towards interest-bearing investments. Investors may be reassessing their strategies amid this climate, paying close attention to economic indicators and geopolitical developments as they prepare for potential market shifts in the coming months.
Source: Market Source
(Expert Note: This report was independently prepared by the Wealthova Commodities team.)