Gold and silver prices experienced significant declines on Monday, following a downtrend in global bullion markets. On the Multi Commodity Exchange (MCX), gold contracts for June delivery opened 0.27% lower at Rs 1,46,850 per 10 grams. The yellow metal saw a sharp fall during the session, dropping as much as 2.06% to hit an intraday low of Rs 1,44,212 per 10 grams.
Silver futures for May delivery also faced pressure, declining by up to 0.96% to Rs 2,25,763 per kg from the previous close of Rs 2,27,954. In the international market, gold prices decreased due to rising energy prices amid the US-Iran conflict, which heightened inflation concerns and reduced expectations of US Federal Reserve rate cuts this year.
Spot gold prices fell by 1.61% to $4,420.48 per ounce, while spot silver prices dropped by around 3% to $67.69 per ounce. Additionally, COMEX gold decreased by 1.69% to $4,447.50, and COMEX silver slipped by nearly 3% to $67.72. Gold prices have fallen approximately 15% this month, marking the most substantial monthly decline since October 2008, driven by a stronger US dollar. Silver prices have also plunged by nearly 30% from their peak in March.
Analysts noted that gold continues to trade weakly despite sporadic safe-haven demand due to geopolitical tensions. They added that the short-term outlook for precious metals remains cautious, with prices expected to be influenced by macroeconomic indicators, interest rate projections, and geopolitical events.
