Gold, Silver Recover From Morning Lows; Silver Surges 2% On Short Covering
- 30th June 2026
- 04:00 PM
- 3 min read
Summary
MCX gold turned flat by mid-afternoon on Tuesday after falling over 1 percent in early trade, while MCX silver surged more than 2 percent on short covering, reversing a weak opening. Global gold prices stayed on track for a fourth straight monthly decline, weighed by a stronger dollar and expectations of further US Federal Reserve rate hikes this year.Mumbai | 30 June 2026
MCX gold was trading at ₹142,417.00 per 10 grams as of 3:21 pm, up ₹15.00, or 0.01 percent, after falling as low as ₹140,450.00 earlier in the session. MCX silver staged a sharper recovery, rising ₹4,445.00, or 2.03 percent, to ₹223,851.00 per kg as of 2:56 pm, against a previous close of ₹219,406.00.
Why Did Prices Reverse? Short Covering Drives The Recovery
Open interest data flagged short covering on both contracts, prices rose even as positions were unwound. Gold’s open interest fell by 65.00 contracts, or 0.63 percent, to 10,287.00, while its day range spanned ₹140,450.00 to ₹142,945.00 against a previous close of ₹142,402.00. Silver’s open interest dropped sharply, down 1,640.00 contracts, or 79.92 percent, to 412.00, with its day range running from ₹217,333.00 to ₹227,980.00.
Morning Weakness: Dollar Strength And Fed Rate Bets
Earlier in the day, MCX gold futures were down 1.28 percent at ₹1,40,574 per 10 grams, while MCX silver futures were down 1.04 percent at ₹2,20,322 per kg, pressured by the dollar’s rise and weak global cues. The dollar index held above 101, set for a second straight monthly gain, making gold costlier for overseas buyers. The CME FedWatch tool showed traders pricing in three rate hikes by the Federal Reserve this year. June ADP employment data and the nonfarm payrolls report, due this week, are expected to offer further clues on the rate path.
Global Gold Prices Set For Steepest Monthly Fall Since 2008
International spot gold prices stood at $3,956.92 per ounce, down nearly 13 percent in June and on course for a fourth consecutive monthly fall, the steepest since October 2008. The metal is also headed for its first quarterly decline since 2024, the largest since the June 2013 quarter.
Outlook
Gold is widely viewed as an inflation hedge but tends to weaken in a high interest rate environment, as it is a non-yielding asset. On the geopolitical front, uncertainty continued over US-Iran talks in Qatar. Iran’s foreign ministry spokesperson, Esmaeil Baghaei, said no meetings were scheduled between the US and Iran on Tuesday or in the coming days. Separately, other reports suggested that US Special Envoy Steve Witkoff was reportedly travelling to Doha as diplomatic engagement between Washington and Tehran continued.
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