Prices of gold in India are under heavy pressure, with rates dropping for six days in a row and volatility expected to persist as geopolitical tensions ease. Monday’s trading range for gold at MCX could swing between ₹96,000 and ₹98,000 per 10 grams, analysts say.
The sharp correction has rattled bullion investors who saw historic highs just two weeks ago. With the global risk premium fading, gold’s shine is dimming — for now.
Gold Falls from June Peak, Losses Mount
Just over two weeks ago, 22-carat gold was setting records. Now? It’s crashing.
The price for 10 grams of 22-carat gold hit ₹93,200 on June 14. As of June 29, it has plunged by ₹3,900 to ₹89,300. The 100-gram rate saw an even steeper fall — down by ₹39,000 from its peak of ₹9,32,000.
That’s a steep drop in such a short time.
24-carat gold wasn’t spared either. It slipped ₹3,300 per 10 grams over six sessions. That’s ₹33,300 lost on every 100 grams — a big blow for those who bought near the peak.
One trader in Delhi’s Karol Bagh gold market said, “People were hoarding at 93K, now they’re stuck. Panic selling is slowly starting.”
Why Gold Is Losing Its Sparkle
So, what’s behind the nosedive?
The biggest trigger is geopolitics. Specifically, a potential ceasefire between Iran and Israel.
When conflict risk goes down, so does gold demand — at least from a safety-seeking perspective. Add in some softening rhetoric from the US on global de-escalation efforts, and the appetite for gold as a hedge disappears fast.
Rahul Kalantri from Mehta Equities put it bluntly: “The war premium is gone.”
Jateen Trivedi, VP at LKP Securities, also pointed to dollar weakness and rate cut expectations as offsetting forces. But they’re not strong enough to reverse the damage. The global mood is too calm for gold to thrive.
MCX Gold Trading Range: ₹96,000 Crucial Support
Gold prices on India’s Multi Commodity Exchange (MCX) are walking a tightrope.
On June 27, MCX gold with August expiry closed at ₹95,524 per 10 grams — that’s a drop of ₹1,563 or 1.61%. Market watchers are keeping a close eye on the ₹96,000 support level. A break below that might accelerate the fall.
Here’s a quick look at key levels analysts are watching:
| Gold Type | Support (₹) | Resistance (₹) |
|---|---|---|
| 24-Carat | 95,100–94,780 | 95,940–96,450 |
| MCX Gold | 96,000 | 98,000 |
If prices stay under ₹96,000 for long, sentiment may shift from cautious to outright bearish.
Comex Prices Touch Four-Week Low
International prices aren’t offering much hope either.
On Friday, Comex gold slipped toward $3,280 per ounce, hitting a one-month low. Kalantri explained that easing trade tensions between the US and China played a role here. With tariff fears taking a backseat, investors no longer feel the urge to park money in gold.
That’s not all. The Fed’s policy outlook is muddy at best. No firm signs of a rate cut are emerging. The Personal Consumption Expenditure (PCE) inflation report, due soon, could tilt the scales — but until then, gold bulls are stuck.
One trader from Mumbai said, “People who bought in June are hurting. The next few days will be critical.”
Silver Stays Steady — Sort Of
Silver hasn’t been hit as hard as gold, but it hasn’t escaped unscathed either.
On June 29, 1kg silver was priced at ₹1,07,800. That’s down just ₹100 from the previous day, but it had already shed ₹1,000 on both June 24 and 25. So the decline is slower — not absent.
Interestingly, MCX silver (July expiry) also took a hit — closing at ₹1,06,429 per kg, down ₹1,468 or 1.4%.
Here’s what’s keeping silver from falling as much:
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Industrial demand has stayed relatively strong
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Some investors view silver as underpriced compared to gold
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Traders are betting on recovery in global manufacturing data
That said, silver still faces pressure if global optimism holds and rate cut bets fade.
What to Watch on June 30
Monday is shaping up to be a big test.
Gold could swing between ₹96,000 and ₹98,000 on MCX. If it climbs back over ₹98,000, bulls might regain confidence. But if it falls under ₹96,000 for long? Watch out — that could open the gates for a deeper selloff.
Rahul Kalantri sees a chance of gold dipping below ₹95,000. He warned that support levels around ₹94,780 could be tested if the bearish momentum continues.
Spot gold on Monday morning was hovering near $3,270 — still near its monthly low.
But it’s not all gloom. Some analysts think gold has strong long-term fundamentals. Weakness in the dollar and any flare-ups in global tensions could give it a boost.
Until then, though, it’s volatility central.
