MCX Gold Drops 1.05%, MCX Silver Tanks 2.85% Amid Rising US Fed Rate Hike Expectations 

MCX Gold and MCX Silver are under sharp selling pressure on June 23, 2026. Gold (GOLD) futures fell 1.05% to ₹1,47,818 per 10 grams on the Multi Commodity Exchange. Global gold prices slipped below $4,150 per ounce as firm expectations of a Fed rate hike outweighed optimism from US-Iran peace talks. MCX Silver led the decline, tanking 2.85%. The US Federal Reserve’s hawkish June stance continues to dominate market sentiment across commodity markets.

Why MCX Gold Is Falling Today

Both Deutsche Bank and BofA Global Research revised their forecasts to include a rate increase in September 2026. This institutional shift is hitting non-yielding assets hard. Gold pays no interest, making it less attractive when yields rise.

Key pressures on MCX Gold today:

• Fed rate hike probability: 70% chance of a hike by September 2026 (CME FedWatch)
• US 10-Year Treasury yield rose toward 4.60%, making precious metals relatively less lucrative
• MCX Gold price: ₹1,47,818 per 10 grams as of June 23, 2026
• Global spot gold: Fell below $4,150 per ounce on June 23

Goldman Sachs pulled all 2026 rate cuts from its forecast, shifting expected easing to June and December 2027. That removed a key price support for gold bulls on the MCX.

MCX Silver Takes a Bigger Hit

Silver’s Dual Demand Problem

MCX Silver suffered a steeper 2.85% drop today. The global silver market is heading for its sixth consecutive annual supply deficit of 46.3 million ounces, yet monetary pressure from rate hike fears is outweighing that structural support.

Silver’s utility and market dynamics make it inherently more vulnerable during economic uncertainty, as it does not benefit from institutional buying the way gold does.

Key data points on MCX Silver:

• MCX Silver price: ~₹2,50,000 per kg on June 23, 2026
• Weekly loss (prior session): Silver was on track for a weekly loss of around 4.5% as a stronger US dollar and rising interest-rate expectations dampened demand.
• Solar demand shift: Solar photovoltaic manufacturers reduced silver consumption by 19% in 2026, cutting an important industrial demand pillar

#Gold prices fall Rs 1,300/10g; silver tanks Rs 7,200/kg on firm dollar, rate hike fears. What should you do?#ETMarkets https://t.co/ccSLynrW1g

— ETMarkets (@ETMarkets) June 23, 2026

Fed Policy and the PCE Report in Focus

Investors are now focused on this week’s PCE report, which contains the Fed’s preferred inflation gauge and is expected to offer fresh insight into underlying price pressures.

US inflation rose to 4.2% in May 2026, the highest since April 2023, driven by a 23.5% energy surge tied to the Iran conflict. A hot PCE print this week could cement the case for a September rate hike and push MCX Gold and MCX Silver even lower.

The key shift this cycle is that the conflict, rather than lifting gold and silver through their conventional monetary appeal, has instead worked against them by feeding inflation, hardening the Fed’s stance, and strengthening the dollar.

What to Watch Next

Both MCX Gold and MCX Silver remain in bearish short-term territory. The upcoming US PCE data release and any Fed commentary will be the next major triggers.

• A hot PCE print pushes rate hike odds higher, pressuring MCX Gold further
• Any dovish Fed signal could support a relief rally in MCX Silver
• Washington granted Iran a 60-day oil sale license, boosting supply recovery expectations and easing one inflation pressure point

MCX Gold and MCX Silver face a tough near-term environment. The Fed’s hawkish pivot, a stronger dollar, and fading safe-haven demand are firmly in the driver’s seat right now.

Disclaimer

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.