Gold Prices Face Pressure as US Federal Reserve Stays Hawkish

Gold prices are facing heavy pressure in recent trading sessions, even though crude oil prices have dropped sharply. On the Multi Commodity Exchange, gold is trading near ₹1,38,500 per 10 grams, while international spot gold is around $3,955 per ounce.

Market Views

Market experts remain divided on the near-term outlook for precious metals. Anuj Gupta, a SEBI registered research analyst, warns that gold and silver could see more selling if the US Federal Reserve goes ahead with a 50 basis point interest rate hike. He sees $3,800 per ounce as a vital support level internationally, and says prices could fall to $3,400 if that level breaks. Kaynat Chainwala, AVP of commodity research at Kotak Neo, notes that gold could hit ₹1.50 lakh per 10 grams on MCX by December 2026. However, she states that this target depends on a strong improvement in the global macro environment, softer US inflation, and a weaker dollar. Kaveri More, a commodity technical analyst at Choice Broking, adds that gold needs to sustain levels between ₹1,42,800 and ₹1,46,100 for a true breakout, while a drop below ₹1,37,300 could expose the metal to deeper correction.

Context

Gold is widely seen as a safe investment during uncertain times, but its price often moves in the opposite direction of US interest rates and the US dollar. When borrowing costs rise in the US, investors often choose interest-bearing assets over gold, which does not pay regular interest. At the same time, because global gold is priced in US dollars, currency shifts directly alter how expensive the metal appears to buyers using other currencies.