Gold and Silver Prices Take a Hit

Gold prices have seen a significant decline, dropping by Rs 700 to Rs 98,420 per 10 grams in the national capital. This downturn is attributed to weak global cues and reduced expectations of a near-term rate cut by the US Federal Reserve. Similarly, silver prices have tumbled by Rs 800 to Rs 1,04,000 per kg.

Market Sentiment Weighed Down by Stronger Dollar and Tariff Risks

"Gold prices are experiencing selling pressure on Wednesday due to reduced expectations for a Federal Reserve rate cut in July and a strengthening US dollar," said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. The dollar's strength, coupled with new US import tariffs, has reinforced the view that the Fed will maintain elevated interest rates.

Investors Await FOMC Minutes for Rate Outlook Clues

With spot gold declining by $11.66 or 0.35% to $3,289.81 per ounce internationally, traders are keenly awaiting the minutes of the Fed’s June FOMC meeting. These documents are expected to provide valuable insights into the central bank’s future rate decisions amidst growing inflationary pressures and a robust labor market.