Gold and silver prices saw a decline of up to 1% on Monday, attributed to signs of reduced geopolitical tensions between the US and Iran following statements by US President Donald Trump. On the Multi Commodity Exchange (MCX), gold contracts for June 5 opened lower at Rs 1,51,150, down by 0.25% from the previous close of Rs 1,51,532. The yellow metal was trading at Rs 1,50,623, marking a decrease of 0.48%.
Silver contracts for July 3 also experienced a drop, opening at Rs 2,50,699, down by 0.09% compared to the previous close of Rs 2,50,937. Silver was trading at Rs 2,49,600, reflecting a decline of 0.53%. In the international market, both gold and silver remained under pressure, with COMEX gold down by 0.55% at $4,619 per ounce and silver declining by 0.48% to $76.065 per ounce.
An expert in the commodity market mentioned that gold prices continued their decline from last week, staying near one-month lows due to factors such as a stronger dollar and high crude oil prices affecting market sentiment. While the easing of US-Iran tensions reduced safe-haven demand, concerns over supply risks in the Strait of Hormuz persisted, leading to inflation worries and a cautiously hawkish stance from major central banks, impacting gold prices.
US President Donald Trump announced plans to assist vessels stranded in the Strait of Hormuz through ‘Project Freedom,’ aimed at aiding neutral countries not involved in the US-Iran conflict. Trump emphasized a humanitarian approach but warned of a strong response to any threats from Iran. Additionally, crude oil prices also saw a sharp decline, with Brent crude falling by 0.61% to $107.51 per barrel and US West Texas Intermediate (WTI) dropping by 2.77% to $99.11 a barrel.
