Gold prices in the domestic futures market slipped below a key psychological threshold on Wednesday, weighed down by a stronger US dollar and cautious investor sentiment. On the Multi Commodity Exchange (MCX), gold futures for the near-month contract declined, breaking below the ₹1.58 lakh per 10 grams level. The decline reflects reduced demand for safe-haven assets as global market participants reassess interest rate expectations and macroeconomic signals from the United States.

Key Highlights

• Gold futures breach ₹1.58 lakh mark as strong dollar and rate concerns pressure prices.
• Silver drops nearly 1% amid cautious outlook and weak global industrial demand signals.

The strengthening of the dollar index made gold more expensive for overseas buyers, leading to subdued global demand and downward pressure on prices. Additionally, expectations that the US Federal Reserve may keep interest rates elevated for longer further dampened investor appetite for non-yielding assets such as gold.

Silver prices also witnessed notable weakness, dropping nearly 1% during the session. The white metal faced pressure amid lower industrial demand forecasts and persistent concerns over global economic growth. Traders remained cautious ahead of key US economic data releases, which could offer further clarity on inflation trends and future monetary policy direction.

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Market analysts indicated that near-term price movements in precious metals are likely to remain volatile, driven by fluctuations in the dollar, bond yields, and geopolitical developments. They advised investors to closely monitor global macroeconomic indicators and central bank cues before making fresh trading positions.

Despite the short-term decline, experts continue to hold a constructive outlook on gold and silver over the medium to long term, citing ongoing geopolitical uncertainties, inflation risks, and central bank buying as supportive factors for prices.