Gold, Silver Slip Nearly 2 pc as Global Rate Concerns Weigh on Demand

June 24: Gold and silver prices declined nearly 2 per cent in global markets as investors turned cautious amid uncertainty over the global interest rate outlook.

The weakness in bullion was driven by expectations that interest rates may remain elevated for longer than previously anticipated, reducing the appeal of non-yielding assets such as precious metals. A stronger US dollar also added pressure, making gold more expensive for buyers holding other currencies.

Market sentiment remained subdued as central banks continued to signal a data-dependent approach to monetary policy, limiting hopes of near-term rate cuts. This has led to reduced safe-haven demand in the precious metals segment.

Silver prices mirrored the decline in gold, tracking both macroeconomic sentiment and concerns over industrial demand in key global markets.

Analysts said short-term volatility in bullion is likely to persist as investors respond to evolving interest rate expectations and currency movements. However, long-term demand for gold and silver remains supported by inflation-hedging needs and ongoing global economic uncertainties.

Market participants are now awaiting fresh economic data and central bank signals for clearer direction on interest rate trends and their impact on commodity prices.