On June 19, 2026, the Indian bullion market also suffered another sharp fall in gold, silver prices tumbled as investors were worried about the global economy. The sell‑off was led by hawkish words from the US Federal Reserve, over the positive sentiment of the recently reached U.S.-Iran peace deal.
Gold prices fell by ₹3,500, marking a drop of less than 2% on the MCX. The benchmark 24-carat gold rate hovered at around ₹1.46 lakh per 10 grams as global markets continued to put pressure on the prices. Silver fell by ₹8,500 or over 3.5% to around ₹2.29 lakh per 10 grams.
The Federal Reserve’s hawkish stance has supported the U.S. dollar and pushed treasury yields higher and non-yielding assets such as gold and silver are looking less attractive. The resulting sell off in bullion markets around the world has resulted in India having one of the sharpest corrections.
Even with the easing of geopolitical tensions after the U.S.-Iran peace deal, the market initially enjoyed optimism on commodity markets. But the Fed’s signal of rate hikes has distracted all of us from these developments, and we’re seeing a global trend towards tighter monetary conditions.
Traders were also in high-risk mode in India as retail customers and investors came into the market and reacted to the steep fall. But traders saw the shift as an opportunity to buy at lower levels, and others were waiting to see what direction toward the Fed’s policy direction. Jewelers were also unsure of demand when prices kept changing and consumer sentiment and prices were fluctuating, so it was hard to gauge.
As long as the Federal Reserve's focus on controlling inflation with super-aggressive monetary tightening continues to escalate inflation, precious metals may be further downside-facing in the short run. But long-term demand in India, driven by cultural traditions and investment habits, will be supported by India's cultural aspects and economic trends to come, once global conditions stabilize, as well as in India, for the long term.
The June 19 crash of gold and silver prices shows how precious metals are subject to global macroeconomic changes and will be as well. With the hawkish tone of the U.S. Federal Reserve dominating the market at the moment, bullion traders and investors will be closely monitoring global signals to determine the next direction for gold and silver.
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