Gold Slips Below $4,000, Silver Cracks Under $60 on Strong Dollar

Gold and silver prices took a sharp knock this week as a stronger US dollar and hawkish signals from the Federal Reserve dragged bullion to its lowest level in nearly three months. On Comex, gold slipped below the $4,000 mark and silver fell under $60 an ounce — a 12-week low for both metals.

Back home, the pressure was just as clear. MCX gold dropped to around Rs 1.47 lakh per 10 grams, while silver crashed by about Rs 6,000 per kg in recent sessions. In the retail market, 24-carat and 22-carat gold rates eased across Delhi, Mumbai and Kolkata, giving some relief to buyers eyeing the wedding season.

Analysts say the trigger is the US Fed's tougher stance on interest rates. When the Fed signals that rates will stay higher for longer, bond yields rise and the dollar strengthens — and that makes gold, which pays no interest, less attractive to global investors. Brokerage ING has also trimmed its gold and silver forecasts, citing rising yields and a stronger dollar.

Silver took an even bigger hit than gold in percentage terms, as the metal tends to swing more sharply in both directions. Traders said the fall was driven largely by global cues rather than any change in local demand, which usually stays firm during the wedding and festival months in India.

Jewellers say footfall in the market often picks up when prices cool off, as families planning weddings see a dip as a buying opportunity. Whether the current slide continues will depend largely on how the dollar and global yields move in the coming sessions, and on the tone of the Fed's next policy signals.

For Indian households, the dip is a double-edged sword. Lower prices are good news for wedding and festival buyers, but those who bought at the peak are sitting on short-term losses. Experts suggest watching the dollar and the next Fed commentary before making big purchases, and advise buyers to spread out their buying rather than rushing in all at once.