Gold, silver extend slide as rate hike fears weigh on precious metals, Bitcoin under pressure

Gold and silver prices witnessed sharp declines on Wednesday amid growing concerns that higher global interest rates could dampen demand for precious metals, as per reports.

On the Multi Commodity Exchange (MCX), gold futures for August delivery opened lower and continued to trade in the red through the session. Silver futures also remained under pressure, reflecting the broader weakness seen across international commodity markets.

According to reports, the decline in bullion prices has been largely driven by expectations of tighter monetary policy in the United States.

Markets are increasingly factoring in the possibility of further interest rate hikes under Federal Reserve Chair Kevin Warsh amid renewed inflation concerns.

Analysts believe higher interest rates typically reduce the appeal of non-yielding assets such as gold and silver.

The sell-off marks a significant reversal from the strong rally witnessed in 2025, when precious metals surged on the back of the so-called "debasement trade" — a belief among investors that rising fiscal deficits and mounting government debt would continue to weaken fiat currencies.

Gold has now fallen nearly 28% from its January 2025 peak of around $5,600 per ounce and has slipped below the $4,000 mark.

On MCX, gold was down by ₹4,473 at 1,42,056 per 10 grams, which is a 3.05% slump.

Silver has seen an even steeper correction, losing more than half its value from earlier highs and trading below $59 per ounce on Wednesday, as per reports.

On MCX, the silver was in red by ₹8,275, a 3.66% decline at ₹2,17,559 per kilogram.

Market experts reportedly cited continued selling pressure and said precious metals may remain vulnerable unless they regain key resistance levels. A break below major support zones could trigger further downside in both gold and silver prices.

The weakness has also extended to cryptocurrencies. Bitcoin, which spent much of 2025 hovering around the $1,00,000 level while precious metals rallied, has continued to slide during the broader correction. The world’s largest cryptocurrency is currently trading below $62,000, representing a decline of nearly 50% from its record high reached in October, according to reports.

Despite the fall, Bitcoin has outperformed both gold and silver in relative terms since February. However, reports suggest that all three asset classes have lagged behind US equities in 2026, where investor interest remains concentrated in semiconductor and memory-related stocks.

Meanwhile, the US dollar index strengthened on Wednesday, adding further pressure on precious metals by making them more expensive for holders of other currencies.