Gold Prices Slip Below ₹1.5 Lakh as Fed Bets Boost Dollar on 19 June 2026

Gold markets experienced a significant downturn on June 19, 2026, with prices in India easing considerably and international rates falling for a second consecutive day. On the Multi Commodity Exchange (MCX), gold futures plunged 2%, breaching the crucial ₹1.5 lakh per 10 grams mark, a level not seen in two months. This decline was mirrored in international markets, where Comex gold and silver continued their fall, putting global gold prices on track for a third straight weekly loss. Investors also saw Gold and Silver ETFs decline by up to 5%, reflecting the broader weakness in precious metals.

The primary drivers behind this global slump were growing expectations of a US Federal Reserve rate hike, which significantly boosted the US dollar's strength. A stronger dollar makes gold, a dollar-denominated asset, more expensive for holders of other currencies, thereby dampening demand. Analysts from Mirae Asset ShareKhan even suggested that gold might test the $4,000 mark internationally amidst a strong dollar and a hawkish Fed outlook, indicating potential further volatility. In India, the rupee and dollar dynamics also played a role in tempering gold's gains, contributing to the overall easing of domestic prices across major cities like Chennai, Mumbai, Delhi, Kolkata, and Visakhapatnam.

Despite the notable drop in prices, Indian gold demand remained surprisingly muted. Even with prices hitting a two-month low, jewelry shoppers and investors held back, contributing to modest demand figures. This subdued interest suggests that buyers might be anticipating further price corrections or are wary of the current volatility. While central bank demand offered some supportive undertones, it was insufficient to counter the strong international headwinds. For investors, the current environment signals caution due to the strong dollar and the Fed's stance. Jewelry buyers, however, might find these lower prices an opportune moment to consider purchases, keeping an eye on local rates from retailers like Tanishq, Joyalukkas, and Kalyan Jewellers, as the market navigates this period of uncertainty.