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Gold Prices Dip Amid Stronger Dollar and Rate Hike Expectations

Indian Community Editorial TeamBy Indian Community Editorial TeamJune 27, 20262 Mins ReadNo Comments Add us to Google Preferred Sources
Gold Prices Dip Amid Stronger Dollar and Rate Hike Expectations
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Gold prices fell by 4.63% over the week, marking the fourth consecutive weekly decline due to a stronger dollar and expectations of higher US interest rates. On the Multi Commodity Exchange (MCX), gold futures for August rose by 0.75% on Friday, while silver futures for July surged over 1% following US inflation data that eased concerns about a Federal Reserve rate hike.

Currently, gold futures are at Rs 1,44,199 and silver futures at Rs 2,22,100 per kg. The price of 10 grams of 24-carat gold dropped to Rs 1,39,878 on Thursday from Rs 1,46,664 at the start of the week, as reported by the India Bullion and Jewellers Association (IBJA).

Despite a rebound towards the end of the week, gold has decreased by approximately 29% from its record high of $5,594.82 on January 29, 2026. Volatility in technology stocks and concerns about artificial intelligence have led some investors to turn to safe-haven assets, supporting the recovery of the yellow metal.

COMEX Gold is currently trading with a corrective bias, with prices above the $4,000 support area. Analysts note that immediate resistance levels are at $4,200 to $4,240, followed by $4,360 to $4,400. For MCX Gold, immediate resistance is at Rs 1,46,000 to Rs 1,47,000, with support at Rs 1,40,000-Rs 1,39,000.

Immediate resistance for MCX Silver stands at Rs 2,30,000 to Rs 2,32,000, while a drop below Rs 2,10,000 could extend the decline towards Rs 2,00,000 to Rs 1,98,000. The Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation measure, increased by 0.4% in May, alleviating immediate concerns about a Fed rate hike.

Markets are still pricing in a 64% probability of further tightening in September, according to the CME FedWatch Tool.

CME FedWatch Tool COMEX Gold Federal Reserve India Bullion and Jewellers Association Multi Commodity Exchange Personal Consumption Expenditures Price Index
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Indian Community Editorial Team

The Indian Community Editorial Team curates, verifies, and publishes stories that matter to Indians worldwide. From culture and community to business and innovation, our mission is to spotlight voices, ideas, and events that bring our global community closer together. Have news or a story to share? Submit it to us at [email protected].

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