Gold, silver prices fall on MCX as Fed rate hike fears grip markets
Synopsis
Gold and silver took a sharp hit on 10 June, with MCX gold futures sliding 1.51% and spot gold hitting an 11-week low of $4,187.59 an ounce. The driver: a stronger dollar, rising crude on Middle East tensions, and traders now pricing over 70% odds of a US Fed rate hike by December — a combination that has put the near-term bias for bullion firmly in negative territory.
Key Takeaways
MCX gold futures (August) fell 1.51% to ₹1,50,140 per 10 grams on 10 June .
MCX silver futures (July) dropped nearly 1% to ₹2,36,239 per kg .
24-carat gold retail price slid to ₹1,48,429 , down from ₹1,52,519 the previous day, per IBJA data.
International spot gold fell 1.8% to $4,187.59 an ounce — an 11-week low .
CME FedWatch shows traders pricing over 70% probability of a US Fed rate hike by December .
Key MCX gold support at ₹1,52,000 ; silver support zone at ₹2,32,000–₹2,34,000 .
Gold and silver futures on the Multi Commodity Exchange (MCX) opened sharply lower on Wednesday, 10 June, as mounting concerns over a potential US Federal Reserve rate hike weighed heavily on bullion prices. The sell-off tracked a global retreat in precious metals, with international spot gold touching an 11-week low.
MCX Price Movement
Gold futures (August) on the MCX declined 1.51% to ₹1,50,140 per 10 grams as of 12:15 pm IST on an intraday basis. Meanwhile, silver futures (July) slipped nearly 1% to ₹2,36,239 per kg.
According to data published by the India Bullion and Jewellers Association (IBJA), the retail price of 24-carat gold stood at ₹1,48,429 per 10 grams on Wednesday, down sharply from ₹1,52,519 at the previous day's market opening — a drop of over ₹4,000 in a single session.
Global Triggers: Dollar Strength and Middle East Tensions
Internationally, spot gold fell 1.8% to $4,187.59 an ounce, its lowest level in 11 weeks, while US gold futures for August delivery dropped to $4,213.40. A firmer US dollar and rising crude oil prices — driven by renewed Middle East hostilities — stoked inflation concerns and reinforced expectations that the Fed could keep rates elevated for longer, analysts noted.
As the dollar strengthened, greenback-priced bullion became more expensive for holders of other currencies, further dampening demand. The CME FedWatch tool showed traders pricing in over 70% odds of a US Fed rate hike by December.
Technical Outlook for MCX Gold and Silver
For MCX gold, analysts placed immediate resistance at ₹1,52,000, noting that a sustained move above this zone would be needed to strengthen momentum and extend any recovery toward the ₹1,54,000–₹1,55,000 range. 'Overall, the near-term bias remains cautious to negative, with geopolitical uncertainties and broader market volatility continuing to influence price direction,' a market participant said.
MCX silver is currently holding above a key support zone of ₹2,34,000–₹2,32,000, reflecting cautious price action amid ongoing volatility. Immediate resistance on the upside is placed at ₹2,38,000–₹2,40,000. Analysts warned that a decisive break below the ₹2,32,000 support level could intensify selling pressure.
What to Watch Next
Market participants will closely track upcoming US Federal Reserve communications and any escalation in Middle East tensions, both of which could determine the near-term trajectory for gold and silver. A sustained dollar rally or a formal Fed rate hike signal could push bullion further toward its recent lows.
Point of View
Gold — which yields nothing — becomes the first casualty. What is notable here is the scale of the domestic drop: a ₹4,000 single-session fall in 24-carat retail gold is the kind of move that hits jewellery demand just as the wedding season winds down. The 70%-plus Fed hike odds priced into CME FedWatch suggest markets are not treating this as a blip. If Middle East tensions simultaneously push crude higher and sustain dollar strength, the traditional safe-haven bid for gold could remain muted — a contradiction that often catches retail investors off guard.
NationPress
5 Aug 2026
Frequently Asked Questions
Why did gold and silver prices fall on 10 June?
Gold and silver fell on 10 June primarily due to fears that the US Federal Reserve could keep interest rates higher for longer, driven by a firmer dollar and rising crude oil prices linked to renewed Middle East hostilities. Higher rates increase the opportunity cost of holding non-yielding assets like gold, prompting investors to sell.
What is the MCX gold price today on 10 June?
MCX gold futures (August) were trading at ₹1,50,140 per 10 grams as of 12:15 pm IST on 10 June, down 1.51% on an intraday basis. The retail price of 24-carat gold stood at ₹1,48,429 per 10 grams, according to IBJA data.
How low has international gold fallen?
Spot gold fell 1.8% to $4,187.59 an ounce on 10 June, touching an 11-week low. US gold futures for August delivery also dropped to $4,213.40.
What are the key support and resistance levels for MCX gold and silver?
For MCX gold, immediate resistance is at ₹1,52,000, with a recovery target of ₹1,54,000–₹1,55,000 on a sustained breakout. For MCX silver, the key support zone is ₹2,32,000–₹2,34,000, and a break below ₹2,32,000 could trigger further selling; resistance is placed at ₹2,38,000–₹2,40,000.
What probability are traders assigning to a US Fed rate hike?
According to the CME FedWatch tool, traders were pricing in over 70% odds of a US Federal Reserve rate hike by December as of 10 June. This expectation has been a key driver of the current weakness in gold and silver prices.
