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Informist, Tuesday, Jun. 9, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX fell Tuesday amid rising US Treasury yields. The fragile ceasefire between Israel and Iran also weighed on gold prices, analysts said. Though gold is usually seen as a safe-haven asset, the uncertainty in West Asia is seen pushing up inflation globally, which in turn may force central banks worldwide to raise interest rates. Market participants now await the May US CPI data, due Wednesday, to gauge the US Federal Reserve's monetary policy path. Gold futures on COMEX fell for a third straight session.

 

At 1550 IST, the most active August contract of GOLD was down 0.3% at INR 154,350 per 10 grams on the MCX. The same-month contract on COMEX was down 0.3% at $4,352.2 per ounce. The most active July SILVER contract on the MCX was steady at INR 246,266 per kilogram. The same-month contract on COMEX was down 0.1% at $68.53 per ounce.

 

Gold prices were weighed down by rising Treasury yields, SMC Global Securities said in a report. The yield on the benchmark 10-year US Treasury note was near a two-week high, increasing the opportunity cost of holding gold. Prices were also weighed down by the fragile ceasefire between Israel and Iran. Monday, Iran and Israel said they had halted attacks on each other after an appeal from US President Donald Trump, but Tehran warned it would resume hostilities if Israel continued to hit Hezbollah in Lebanon. 

 

"Strong US job data and higher inflation increased the possibilities of Fed rate hikes this year and pressurising precious metal prices," Manoj Jain, director of Prithvi Finmart, said in a note. US non-farm payrolls rose by 172,000 in May, against expectations of an 85,000 increase. Traders are now pricing in a more than 43% chance of a Fed rate hike at its December meeting, according to the CME FedWatch tool. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal.

 

"Gold has already corrected nearly 26% from its record high near $5,600 per ounce, exceeding the decline witnessed during the 2022 Federal Reserve tightening cycle. With prices now approaching the critical $4,098 support zone, the market is entering a decisive phase," Ajay Kedia, director of Kedia Advisory, said in a note. "A break below this level could expose gold to a deeper correction toward the $3,550–3,600 region, bringing the current decline closer to the major bear-market corrections witnessed in 2008 and 2011. Unless bullion decisively reclaims the $4,600–4,640 resistance zone, downside risks are likely to remain elevated," Kedia added.

 

Outlook for the rest of the session:

--MCX gold seen at INR 151,500–INR 155,500 per 10 grams

--COMEX gold seen at $4,280–$4,370 an ounce

--MCX silver seen at INR 238,000-INR 248,000 per kg

--COMEX silver seen at $64.00-$71.00 an ounce

 

End

 

US$1 = INR 95.35

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

 

Edited by Rajeev Pai

 

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