Gold, silver prices fall on MCX as Fed signals rate hikes, US-Iran deal eases tensions
Synopsis
A hawkish Fed holding rates while flagging more hikes, combined with an interim US-Iran deal draining geopolitical risk premium, sent MCX gold down 1.37% and silver down 2.73% on Thursday. Silver's industrial demand story — anchored in AI infrastructure and China's renewables push — is the one cushion keeping its losses from deepening further.
Key Takeaways
MCX gold futures (August) fell 1.37% to an intraday low of ₹1,51,768 on 18 June .
MCX silver futures (July) dropped 2.73% to ₹2,44,945 , touching a session low of ₹2,44,647 .
The US Federal Reserve held rates unchanged but signalled support for additional hikes, weighing on precious metals.
An interim US-Iran agreement eased geopolitical tensions, reducing safe-haven demand for gold and silver.
COMEX gold fell over 1% to $4,318.90 ; COMEX silver dropped nearly 3% to $68.76 .
Brent crude declined 1.64% to ~ $78/barrel ; WTI crude fell 2% to ~ $75/barrel .
Gold and silver prices declined sharply on the Multi Commodity Exchange (MCX) on Thursday, 18 June, as the US Federal Reserve's hawkish stance and an interim US-Iran agreement that eased geopolitical tensions combined to drain safe-haven demand from precious metals.
MCX Gold and Silver Levels
Gold futures (August) on the MCX fell as much as 1.37 per cent, or ₹2,111, to an intraday low of ₹1,51,768 as of around 11:36 am IST. The yellow metal was last trading at ₹1,51,797, down ₹2,082 or 1.35 per cent from its previous close of ₹1,53,879.
Silver futures (July) saw steeper losses, trading at ₹2,44,945 — down ₹6,862 or 2.73 per cent from the previous close of ₹2,51,807. The white metal hit an intraday low of ₹2,44,647, a decline of nearly 3 per cent or ₹7,160 during the session.
What Is Driving the Selloff
Commodity market analysts attribute the pressure on precious metals to two converging forces: rising US Treasury yields and a stronger US dollar, both of which reduce the relative appeal of non-yielding assets like gold and silver.
Sentiment weakened further after the US Federal Reserve held interest rates unchanged but signalled openness to additional rate hikes, reiterating its commitment to bringing inflation back to target. A higher-for-longer rate environment typically weighs on gold by increasing the opportunity cost of holding it.
Analysts noted that the interim US-Iran agreement further dampened safe-haven buying, as easing geopolitical risk reduces the premium investors attach to gold in times of uncertainty. This is a notable reversal from the elevated safe-haven demand that had supported precious metal prices in recent weeks.
Silver's Industrial Demand Cushions the Fall
Despite the broad-based decline, silver's losses were partially contained by expectations of robust industrial demand. Analysts pointed to rising investments in artificial intelligence (AI) infrastructure, data centres, renewable energy projects, and energy storage systems — particularly in China — as factors supporting silver's medium-term demand outlook. Silver's dual role as both a precious and industrial metal gives it a partial buffer that gold lacks in risk-off environments driven by geopolitical de-escalation.
International Markets and Crude Oil
In global markets, COMEX silver was trading nearly 3 per cent lower at $68.76 per ounce, while COMEX gold was at $4,318.90, down more than 1 per cent. On the energy front, Brent crude declined 1.64 per cent to trade around $78 per barrel, while US West Texas Intermediate (WTI) crude fell 2 per cent to approximately $75 per barrel, reflecting the same risk-off tone across commodity markets.
Traders will be watching further Fed commentary and any developments in the US-Iran diplomatic process for the next directional cue on precious metals.
Point of View
At least temporarily, cooled. The more interesting signal is silver — its industrial demand story, anchored in AI infrastructure and China's energy transition, is increasingly decoupling its floor from gold's. If that demand thesis holds, silver's downside may be structurally shallower than the headline percentage drop suggests, even as gold remains hostage to US rate trajectory.
NationPress
3 Aug 2026
Frequently Asked Questions
Why did gold and silver prices fall on 18 June?
Gold and silver fell on 18 June because the US Federal Reserve kept interest rates unchanged while signalling further rate hikes, lifting the US dollar and Treasury yields and reducing the appeal of precious metals. An interim US-Iran agreement also eased geopolitical tensions, cutting safe-haven demand.
What were the MCX gold and silver prices on 18 June?
MCX gold futures (August) hit an intraday low of ₹1,51,768, down 1.37%, while MCX silver futures (July) fell to ₹2,44,945, down 2.73% from the previous close of ₹2,51,807.
How did international gold and silver prices move?
COMEX gold was trading at $4,318.90, down more than 1%, while COMEX silver fell nearly 3% to $68.76 per ounce, mirroring the domestic MCX trend.
Why did silver fall less than expected despite the selloff?
Silver's losses were cushioned by expectations of strong industrial demand, driven by investments in AI infrastructure, data centres, renewable energy, and energy storage — particularly in China — which provides a demand floor that gold does not have.
What impact did the US-Iran agreement have on commodity markets?
The interim US-Iran agreement reduced geopolitical risk premiums across commodity markets, dampening safe-haven buying in gold and silver and contributing to a broader risk-off move that also pushed Brent crude down 1.64% and WTI crude down 2%.
