Gold and silver prices resumed their losing streak on Monday, 29 June, as renewed tensions in the Middle East sparked concerns over inflation and the prospect of further interest rate hikes by the US Federal Reserve.
Comex gold futures fell $84 per troy ounce to an intraday low of $4,012, snapping a two-day winning streak. Comex silver futures declined $1.40 per troy ounce to $57.84.
Silver ended last week down 10.7%, extending its weekly losing streak to seven weeks, and is on track to end June with losses of more than 20%.
Meanwhile, gold posted a 1.7% weekly decline last week and remains on course to lose more than 10% in June, which would mark its fourth consecutive monthly decline.
Middle East tensions return to focus
Hostilities between the US and Iran resurfaced over the weekend. The latest exchange of attacks began on Thursday when Iran targeted a container ship, prompting US retaliatory strikes the following day.
However, both sides have reportedly agreed to temporarily halt military action, allowing commercial vessels to transit freely through the region before peace talks resume later this week, Bloomberg reported, citing a US official familiar with the matter.
Providing some relief, the United States announced that senior officials will meet their Iranian counterparts in Doha on Tuesday (30 June) in a fresh effort to preserve the fragile interim agreement that ended months of fighting. However, Iran has denied that any technical negotiations are scheduled this week.
Earlier this month, the United States signed an interim agreement with Iran, but the recovery in precious metals has remained capped by the stronger US dollar, which touched a 14-month high last week.
Rising energy costs have also prompted several Federal Reserve officials to signal the possibility of additional rate hikes this year, supported by persistent core inflation. Richmond Federal Reserve President Tom Barkin said on Sunday that inflation remains too high, although he sees tentative signs that price pressures could moderate in the coming months, Bloomberg reported.
Gold has fallen about 23% since the conflict began in late February and briefly slipped below the $4,000 mark last week. Silver was 35% down, and during last week, it fell to the lowest level since November 2025.
Higher energy prices have fuelled inflationary pressures and strengthened expectations that central banks will keep interest rates higher for longer, reducing the appeal of non-yielding assets such as gold.
Analyst sees near-term volatility in gold prices
Commenting on the trend, Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said, “Gold witnessed fresh profit booking as prices faced strong resistance near $4,100 on COMEX and around ₹1,45,500 on MCX. A stronger US dollar continued to weigh on bullion, while expectations of higher interest rates reduced the appeal of non-yielding assets such as gold.”
“Buying interest from central banks has also slowed as markets reassess the global interest rate outlook. Investors are now awaiting key US ADP Employment Change, Nonfarm Payrolls, and Unemployment data, which will play a crucial role in shaping the dollar’s direction and gold’s next move. Until then, volatility is likely to remain elevated,” he further added.
MCX gold and silver resume decline
Tracking weakness in global markets, the near-month ₹2,305″>gold futures contract on MCX fell ₹2,305 per 10 grams to an intraday low of ₹1,41,857, putting the metal on track to end the month in negative territory.
Silver prices also resumed their decline, falling ₹902 per kg to ₹2,20,502. Silver’s month-to-date losses now stand at 17%, wiping out all the gains recorded in May. From its record high of ₹4,57,328 per kg, the metal has fallen by nearly ₹1.96 lakh, or about 47%. Gold is down 8% so far in June but remains 5% higher on a year-to-date basis.
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