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Informist, Thursday, Jun. 11, 2026

 

By Reshma Ravi

MUMBAI – Futures contracts of gold and silver extended their fall on the Multi Commodity Exchange of India and COMEX Thursday as market participants worried about the inflationary impact of the sharp rise in energy prices as the US and Iran continued to strike each other, calling into question the already shaky peace process in the region. Investors now await the May Producer Price Index reading due later in the day to gauge the US Federal Reserve's monetary policy stance.

 

At 1620 IST, the most active August contract of GOLD was down 0.5% from Wednesday at INR 147,455 per 10 grams on the MCX. The same-month contract on COMEX was down 0.8% at $4,101.4 per ounce. The most active July SILVER contract on the MCX was down 0.3% at INR 234,800 per kilogram. The same-month silver contract on COMEX was down 0.9% at $64.14 per ounce.

 

The US military confirmed it had launched a new wave of strikes on several Iranian targets Wednesday, just hours after President Donald Trump warned of further attacks if a peace agreement wasn't reached. Iran responded by announcing it was closing the Strait of Hormuz. Thursday, Iran's top joint military command declared the Strait of Hormuz closed for all vessels, including oil tankers and commercial ships, and warned that any ship attempting to pass would be fired upon, Reuters reported. "Gold and silver extended their fall due to US-Iran war escalations. However, dip buying and short coverings could support prices at lower levels," Manoj Jain at Prithvi Finmart said. 

 

Prices also fell on expectations of an interest rate hike by the Fed. "Recent batch of data showed US inflation came in line with expectations but accelerated to the fastest pace in 3 years, fuelling ongoing worries that the Fed will have to keep rates higher for a longer time," ICICI Direct said in a report. US consumer prices rose 0.5% in the month on a seasonally adjusted basis, pushing annual inflation to 4.2%, according to the Bureau of Labor Statistics Wednesday. Inflation breached 4% for the first time in three years. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal.

 

"Gold is now trading more than 22% lower than where it was before the US and Israel launched military strikes on Iran in late February. The spectre of higher inflation forcing the Fed to raise interest rates has been the main issue keeping sentiment bearish in the precious metal sector," Daniel Hynes, senior commodity strategist at ANZ, said in a note.

 

Outlook for the rest of the session:

--MCX gold seen at INR 145,500–INR 150,000 per 10 grams

--COMEX gold seen at $4,070–$4,150 an ounce

--MCX silver seen at INR 230,000-INR 238,500 per kg

--COMEX silver seen at $61.00-$67.00 an ounce

 

End

 

US$1 = INR 95.76

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

 

Edited by Rajeev Pai

 

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