COMEX gold was last trading at $3,999 per ounce, down $9.40 or 0.23%, after moving between $3,992.30 and $4,033.90 an ounce during the session. COMEX silver fell more sharply, declining 1.77% to $57.06 per ounce, with prices touching an intraday low of $56.81 an ounce.
The weakness in bullion followed a broad rally in the US dollar, which climbed to a 13-month high for a third straight session, making precious metals more expensive for holders of other currencies.
Gold also slipped below the key $4,000-per-ounce level on Wednesday (June 24) for the first time since November 2025, highlighting the growing pressure from tightening monetary policy expectations.
Market participants are pricing in additional Federal Reserve rate hikes later this year, with traders expecting as many as three hikes and assigning strong odds to a September increase, according to CME FedWatch estimates.
Higher interest rates typically reduce the appeal of non-yielding assets such as gold and silver.
Investors are now closely watching the release of the US Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation measure, along with GDP, durable goods orders, and weekly jobless claims data later in the day for further direction on interest rate policy.
Analysts said the precious metals complex remains caught between macroeconomic headwinds and lingering geopolitical uncertainty.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions and President of the India Bullion and Jewellers Association, said gold and silver are facing pressure from a stronger dollar, hawkish Fed expectations, and broader risk-off sentiment in global markets.
He noted that gold is currently testing an important support range between $4,000 and $4,060 an ounce, while silver is approaching support around $60–$61 an ounce. According to him, oversold market conditions and persistent geopolitical risks could support a technical rebound in prices in the near term.
Meanwhile, easing tensions in the West Asia and softer commodity prices have improved broader market sentiment.
Avinash Agarwal, Senior Vice President and Head of Equity at Bandhan Life, said moderating inflation concerns and resilient domestic fundamentals are supporting investor confidence in equities.
He added that gold continues to remain an important portfolio hedge amid ongoing global uncertainties, even as near-term volatility persists due to changing interest-rate expectations.
Markets are expected to remain volatile in the near term as investors assess incoming US economic data and its implications for the Federal Reserve’s policy outlook.
-With Reuters inputs
