Gold Falls 1.11% to ₹15,219/gram in India, June 18

Gold prices fell 1.11% to ₹15,219 per gram on June 18 across India, with 22-carat gold at ₹13,849 per gram and silver down 2.53% to ₹246.33 per gram. The decline follows the US Federal Reserve’s decision to hold rates steady while signaling a possible hike by year-end. A stronger US dollar and higher interest rates reduce gold’s appeal to investors.

Why Gold Prices Dropped Today

The Federal Reserve held interest rates at 3.5%-3.75% on June 17 but signaled nine members support a rate hike by year-end. This hawkish stance strengthened the US dollar index by 1% to its best day in nearly a year. Gold fell more than 2% globally as higher interest rates reduce the opportunity cost of holding non-yielding assets like bullion.

The Indian rupee weakened 21 paise to 94.66 against the US dollar in early trade on June 18. This currency movement, combined with global gold weakness, pushed domestic prices lower across all purities.

City-by-City Gold Rates

24-carat gold fell ₹171 per gram from the previous session, now trading at ₹1,52,190 per 10 grams. 22-carat gold declined by the same 1.11% to ₹1,36,000 per 10 grams, while 18-carat gold mirrored the broader trend lower. Prices vary slightly across major cities including Delhi, Mumbai, Chennai, Kolkata, Bangalore, and Hyderabad, with rates set by the India Bullion and Jewellers Association (IBJA).

Silver’s Sharper Decline

Silver fell more steeply than gold, dropping 2.53% to ₹246.33 per gram or ₹2,463.30 per 10 grams on June 18. The metal declined ₹3,807 per kilogram from the previous close to ₹2,48,000 per kilogram. Silver’s larger loss reflects its higher sensitivity to interest rate expectations and economic growth concerns tied to Fed tightening signals.

What Traders Expect Ahead

Analysts at Nuvama Professional Clients Group say MCX gold is consolidating with a sideways to bullish tone. The 148,000 level marks the critical support on the chart, with gold targeting 160,000 as the next resistance. A firm close below 148,000 would negate the intermediate bullish move, but holding above it keeps the broader uptrend intact for the week ahead.

Final Thoughts

Gold fell 1.11% to ₹15,219 per gram on June 18 as the Fed signaled rate hikes ahead, strengthening the dollar and reducing bullion’s appeal. With support at 148,000 and resistance at 160,000 on MCX, traders should watch these levels closely for direction.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.