Gold, silver fall on Fed rate hike expectations; analysts see near-term pressure

Gold and silver prices fell for a second consecutive day on the MCX, with gold dropping Rs 4,300 per 10 grams and silver declining nearly Rs 9,000 per kg, driven by expectations of further US Federal Reserve rate hikes. Rising oil prices have fueled inflation concerns, strengthening the case for additional Fed rate increases, which typically weigh on precious metals. Markets see a 70.3% probability of a rate hike in October, and analysts expect near-term pressure on gold and silver prices. Traders are advised to avoid long positions until clarity emerges on US-Iran peace talks, though long-term investors could accumulate via systematic investment plans. Spot gold traded near $4,124.57 per ounce, while physical gold prices in Delhi stood at Rs 1,10,232 for 22-carat and Rs 1,20,248 for 24-carat per 8 grams.