MCX gold prices fell by at least Rs 1,416, reaching an intraday low of Rs 1,41,115 per 10 grams. Globally, spot gold is struggling, trading below the $4,000 mark and hitting an 8-month low. 

MCX silver took a massive hit, crashing by Rs 5,662 to reach a daily low of Rs 2,22,901 per 1Kg. Spot silver followed a similar trend, plunging nearly 2% to a 7-month low of $57.6 per ounce. 

The primary catalyst for this downturn is robust US economic data, which has demonstrated the economy’s resilience and cemented market expectations that the Federal Reserve will implement interest rate hikes this year. 

Key economic indicators influencing this shift include:

Strong Employment: The latest JOLTS report revealed that US job openings have surged to a two-year high. Additionally, market analysts are anticipating another solid increase in the upcoming June non-farm payrolls. 

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Persistent Inflation: According to a report by Trading Economics, recent core inflation readings are maintaining levels significantly above the Federal Reserve’s target of 2%.