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Informist, Wednesday, Jun. 17, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver fell on the Multi Commodity Exchange of India Wednesday, tracking losses in COMEX contracts as the dollar strengthened. Prices also came under pressure as market participants remained cautious ahead of the US Federal Reserve's policy decision under new Chair Kevin Warsh, due later Wednesday. The fall in prices is likely to be limited as market sentiment improved after the peace agreement between the US and Iran helped reduce geopolitical tensions and eased concerns about energy-driven inflation. 

At 1656 IST, the most active August contract of GOLD was down 0.4% at INR 152,600 per 10 grams on the MCX. The same-month contract on the COMEX was down 0.3% at $4,342.1 per ounce. The most active July SILVER contract on the MCX was down 0.6% at INR 248,700 per kilogram. The same-month silver contract on the COMEX was down 0.3% at $69.82 per ounce.

 

At 1655 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 99.66. A strong greenback makes dollar-priced commodities, such as gold and silver, costlier for holders of other currencies, thereby denting demand.

 

"The gold market will take cues from signals from the FOMC (Federal Open Market Committee) today. With Kevin Warsh taking his seat at the helm for the first time, investors will be watching closely how he interprets recent market developments," Ole Hansen, analyst at Saxo Bank, said in a note. The US central bank is most likely to keep the policy rate unchanged, but the focus will be on the statement and the dot plot to get clarity on the interest rate trajectory. Additionally, any discussion on reducing the size of the Fed's balance sheet will draw attention, ICICI Direct said in a report. 

 

"Although prices moved lower, downside pressure remained limited as market sentiment improved after an interim US–Iran peace agreement helped ease concerns over an energy-driven inflation shock, reducing the likelihood of aggressive monetary tightening," analysts at Kedia Advisory said. 

The agreement extends the existing ceasefire and facilitates the reopening of the Strait of Hormuz, easing supply concerns in global energy markets. "Lower oil prices have subsequently reduced inflationary pressures, leading traders to reassess the likelihood of tighter monetary policy in the US," analysts said.

 

Outlook for the rest of the session:

--MCX gold seen at INR 151,000–INR 155,000 per 10 grams

--COMEX gold seen at $4,320–$4,400 an ounce

--MCX silver seen at INR 245,000-INR 256,000 per kg

--COMEX silver seen at $67.00-$72.00 an ounce

End

 

US$1 = INR 94.53

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

 

Edited by Saji George Titus

 

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