New Delhi, June 23: Gold and silver prices fell by up to 3% amid growing concerns over a possible interest rate hike by the US Federal Reserve, which has weighed on investor sentiment in global bullion markets.
The decline reflects increased caution among investors, as expectations of higher interest rates tend to strengthen the US dollar and reduce the appeal of non-yielding assets such as gold and silver.
Market analysts said precious metals came under pressure as traders reassessed their positions in response to evolving monetary policy signals from the US central bank. A stronger dollar and higher bond yields typically reduce demand for safe-haven assets like bullion.
Despite the short-term decline, experts noted that gold and silver continue to remain important hedging instruments amid ongoing global economic uncertainties, including inflation risks and geopolitical tensions.
Traders are closely watching upcoming US economic data and Federal Reserve commentary for further cues on the interest rate trajectory, which is expected to influence bullion prices in the near term.
Overall, the precious metals market remained under pressure as global investors adjusted expectations around US monetary policy.
