Precious metals plunged in Indian markets early Wednesday, tracking a global selloff as resilient U.S. economic data fueled expectations that the Federal Reserve will raise interest rates later this year.On the Multi Commodity Exchange (MCX), gold futures tumbled as much as 1% to an intraday low of 141,115 rupees per 10 grams, a drop of 1,416 rupees. Silver suffered even steeper losses, crashing by 5,662 rupees to hit a session low of 222,901 rupees per kilogram.

The sharp decline mirrored action in global spot markets, where gold continued to trade below the $4,000-an-ounce threshold, lingering at an eight-month low. Spot silver slid nearly 2% to trade near a seven-month low of $57.60 per ounce.

The primary catalyst for the selloff was a string of robust economic indicators out of the U.S., which underscored the economy’s underlying strength and complicated the inflation outlook.

• Labor Market Tightness: The latest Job Openings and Labor Turnover Survey (JOLTS) showed vacancies climbing to a two-year high. Wall Street analysts are forecasting another solid expansion in non-farm payrolls for June.
• Sticky Inflation: Recent core inflation readings have remained stubbornly above the Federal Reserve’s 2% target, according to data from Trading Economics.

Higher interest rates typically damp the appeal of non-yielding assets like gold and silver, as investors opt for higher-yielding U.S. Treasury bonds and a strengthening dollar. Markets are currently pricing in at least one Fed rate hike this year, with the first potentially arriving as early as September.

Beyond macroeconomic data, investors are closely monitoring geopolitical developments in the Middle East. Ongoing U.S.-Iran peace talks in Qatar have raised cautious optimism for a lasting ceasefire agreement, reducing the safe-haven premium that has historically supported precious metals. The two sides, however, are not expected to engage in direct negotiations.