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Informist, Wednesday, Jun. 3, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India Wednesday, tracking a fall in contracts on COMEX due to a rise in the dollar. Prices also fell as renewed hostilities in West Asia pushed crude oil prices up, reviving inflationary concerns and reaffirming market bets that interest rates would stay higher for longer.

 

"Analysts expect precious metals to remain volatile amid geopolitical developments, interest-rate uncertainty, and evolving global bullion trade dynamics," analysts at Kedia Advisory said in a note.

 

At 1535 IST, the most active June contract of GOLD was down 0.6% at INR 158,412 per 10 grams on the MCX. The same-month contract on COMEX was down 1% at $4,484.4 per ounce. The most active July SILVER contract on the MCX was down 0.9% at INR 264,199 per kilogram. The same-month contract on COMEX was down 1.1% at $74.70 per ounce.

 

At 1540 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.1% at 99.33. A strong greenback makes dollar-priced commodities, such as gold and silver, less appealing to holders of other currencies, thereby denting demand.

 

"...prices may slip as renewed hostilities in the Middle East (West Asia) may weaken the hopes of imminent resolution between the US and Iran and reignite inflation concerns and higher interest rates for a prolonged time," ICICI Direct said in a report.

 

The US military said it had launched "self-defence" strikes on Iran and shot down ballistic missiles and drones fired at ships and other countries in the Persian Gulf region, the BBC reported. Iran said it attacked US bases and helicopters in a "regional country" using missiles and drones. The latest attacks come amid stalled ceasefire negotiations, after talks on a deal to end the months-long war failed to advance over the weekend. "Resumption of military strikes at a time when diplomatic talks between the US and Iran remained stalled will sustain heightened anxiety," the broking firm said. 

 

Meanwhile, US Secretary of State Marco Rubio said Washington will not lift sanctions on Iran in exchange for a full reopening of the Strait of Hormuz, adding that any sanctions relief is conditioned upon Iran giving up its nuclear programme.

 

Hawkish remarks by US Federal Reserve officials also weighed on gold prices. "Adding to the pressure on bullion, Cleveland Federal Reserve President Beth Hammack indicated that the US central bank may need to raise interest rates if inflation continues to accelerate," SMC Global Securities said in a report. According to the CME Group's FedWatch tool, market participants are pricing in a Fed rate hike before the end of the year, with a 42% chance of a 25-basis-point hike in December. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal.

 

Market participants are now awaiting the ADP employment data, due later in the day, and the non-farm payrolls and unemployment rate report, due Friday, to gauge the Fed's monetary policy path.

 

Meanwhile, "the outlook for the precious metal remains contingent on developments in the Middle East (West Asia). With key issues unsolved, gold prices are likely to remain rangebound," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

 

Outlook for the rest of the session:

--MCX gold seen at INR 157,200–INR 160,000 per 10 grams

--COMEX gold seen at $4,420–$4,520 an ounce

--MCX silver seen at INR 260,000-INR 268,000 per kg

--COMEX silver seen at $71.00-$77.00 an ounce

 

End

 

US$1 = INR 95.70

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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