Gold and silver are going to close the June quarter with a decline, due to which the trend of growth that has been going on for five consecutive quarters has been broken. Gold is heading for its biggest quarterly decline in the last decade, while silver is on track for its worst performance in the last four years.
Gold prices have fallen nearly 12 percent so far in the June quarter, the biggest fall since December 2016, while silver has fallen 17.6 percent, the steepest fall since June 2022.
This decline appears even bigger when compared to the record high. Gold, which reached a lifetime high of $5417 an ounce, has since fallen 24 percent, while silver, which reached a record high of $117 an ounce on January 28, has fallen nearly 47 percent.
This change has come after the excellent performance of both the metals in the last two years. Gold increased by 10 percent between January and March 2026, while it increased by 65 percent in 2025 and 28 percent in 2024. Whereas silver increased by 28 percent between January and February 2026, while it increased by 148 percent in 2025 and by 22 percent in 2024.
Due to this reason gold and silver fell
This decline continued even after the agreement was signed between America, Iran and Israel. The biggest reason for this is the US Fed’s strict stance on policy. In fact, due to the rise in energy prices, inflation is not showing signs of decreasing. Because of which the Fed has made its stand clear regarding the increase in policy rate.
Due to which there has been a rise in the dollar index and a fall in the prices of gold and silver. Since the policy meeting, an increase of 1 percent has been seen in the dollar index and the figure is close to the level of 102. Which is a year high. This means that further decline in the prices of gold and silver may be seen.
Experts say that the continuous decline in gold and silver is mainly due to the strengthening US dollar, increase in US bond yields and changing expectations regarding the interest rates of the Federal Reserve. Since both metals do not yield any interest, the “prolonged high interest rates” environment makes them less attractive compared to fixed income assets like Treasuries.
The recent decline in tech stocks has put further pressure on precious metals. This is happening at a time when the threat of inflation remains and concerns are growing that the Federal Reserve may have to increase interest rates further.
What do experts say?
Deveya Gaglani, senior research analyst for commodities at Axis Direct, said in a Money Control report that bullion remains under pressure despite easing of geopolitical concerns and improvement in crude oil prices. The reason for this is the Fed’s tough stance amid rising inflation and the rise in the dollar index, which has reached its highest level in a year. Gaglani said that as long as the dollar remains above the level of 100, the prices of gold and silver are expected to continue to fall.
Recently, Federal Reserve Bank of Chicago President Austin Goolsby said that he is concerned about inflation. He raised the question whether all the reasons causing increase in prices are temporary. He said that the economy is facing the problem of inflation which is much above the target and is moving in the wrong direction. Traders will now keep an eye on the US Personal Consumption Expenditure Price Index due on Thursday, which is expected to rise.
Big decline in India too
If we talk about India, a big fall has been seen in the prices of gold and silver on the futures market Multi Commodity Exchange. If we talk about today only, a fall of Rs 1829 is being seen in the August contract of gold at 2:55 pm and the price is seen at Rs 1,44,701 per ten grams. Whereas during the trading session, the price of gold came to the lower level of the day at Rs 1,44,114 per ten grams.
This means that a fall of Rs 2,415 has been seen in the prices of gold during the trading session. However, since June 17, gold prices have seen a decline of Rs 9,765 per ten grams. The July contract of gold on MCX was at a peak of Rs 2,04,375. Since then it has seen a decline of Rs 60,261.
On the other hand, a similar environment is being seen in silver prices also. According to MCX data, on Wednesday at 3 pm, silver was trading at Rs 2,24,805 per kg with a fall of Rs 1029 per kg. Whereas during the trading session, silver prices fell by Rs 4,176 and came down to Rs 2,21,658 per kilogram.
However, since June 17, a decline of Rs 30,149 per kg has been seen in the prices of silver. On January 29, the July contract of silver was at Rs 4,57,328, in which till now a fall of Rs 2,35,670 has been seen.
