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Informist, Thursday, Jun. 18, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver fell sharply on the Multi Commodity Exchange of India and the COMEX Thursday after US Federal Reserve officials signalled an interest rate cut by the end of this year. Prices on the domestic exchange were weighed down as the rupee strengthened against the dollar. However, the fall in prices is likely to be limited due to the US-Iran peace deal.  

 

The rupee on Thursday closed at 94.3325, up 0.2% against the US dollar. When the rupee depreciates against the dollar, prices of gold and silver in the domestic market adjust as the precious metals are priced in rupees. 

 

At 1545 IST, the most active August contract of GOLD was down 2% at INR 150,850 per 10 grams on the MCX. The same-month contract on the COMEX was down 2% at $4,307.5 per ounce. The most active July SILVER contract on the MCX was down 3.3% at INR 243,531 per kilogram. The same-month silver contract on the COMEX was down 3.2% at $68.53 per ounce.

 

"Bullion declined as much as 2.3% as policymakers' new projections indicated nine officials foresee at least one quarter-point hike this year, with six anticipating at least two," SMC Global Securities said in a report. Nine of the US central bank's 19 policymakers now believe they will need to raise the policy rate this year, according to projections published on Wednesday, after the Fed announced its decision to leave the policy rate in its current 3.50-3.75% range in Kevin Warsh's debut policy meeting as Chair.

 

"Half of FOMC members indicated that interest rate hikes may be necessary this year as core inflation is expected to remain higher due to the economic effects of the Middle East (West Asia) conflict," analysts at Kedia Advisory said in a report. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal. 

 

However, the fall in prices is likely to be limited. "..sharp fall in prices may be cushioned by reports that the US and Iran signed an interim peace deal electronically to end the war and open the Strait of Hormuz, which may restore oil flows through the Persian Gulf," ICICI Direct said in a report. US President Donald Trump and Iran's President Masoud Pezeshkian have electronically signed a memorandum of understanding to end the US and Israel's war on Iran. As a first step under the agreement, Iran will immediately reopen the Strait of Hormuz, while the US will lift its naval blockade on Iranian ports.  

 

Outlook for the rest of the session:

--MCX gold seen at INR 149,000–INR 152,500 per 10 grams

--COMEX gold seen at $4,240–$4,325 an ounce

--MCX silver seen at INR 235,000-INR 252,000 per kg

--COMEX silver seen at $65.00-$72.00 an ounce

 

End

 

US$1 = INR 94.33

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

 

Edited by Avishek Dutta

 

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