MCX gold futures were trading around ₹1.46 lakh per 10 grams, down over 1%, while MCX silver futures slipped below ₹2.33 lakh per kilogram during the session.
Analysts said bullion sentiment remained weak as traders reassessed the outlook for US monetary policy following hawkish signals from the Federal Reserve and elevated Treasury yields.
Ravi Singh, Chief Research Officer at Master Capital Services, said, that the ₹1.45 lakh per 10 grams level remains a key support zone for gold prices.
“A decisive break below that could accelerate selling pressure and open the door for a move towards the ₹1.40 lakh per 10 grams mark,” Singh said.
Silver futures also remained under pressure after witnessing a sharp decline in the previous session. On Tuesday, MCX silver futures for July delivery had plunged by ₹8,158, or 3.48%, to ₹2.26 lakh per kilogram.
“Silver prices moved lower in the domestic markets, as a stronger US dollar and rising expectations of further interest rate hike by the Federal Reserve weighed on investor sentiment,” Navneet Damani, Head of Research – Commodities at Motilal Oswal Financial Services, said.
Market participants also tracked developments surrounding US-Iran negotiations and improving crude oil supply expectations, which reduced safe-haven demand for bullion.
“Traders will focus on the upcoming Personal Consumption Expenditures report, Fed’s preferred inflation measure, which is expected to shed fresh light on underlying price pressures,” Renisha Chainani, Head of Research at Augmont, said.
