Gold and silver prices saw a decline on Monday, with precious metals falling by nearly 4% due to escalating tensions in West Asia, a volatile global macroeconomic environment, and rising crude oil prices. On the Multi Commodity Exchange (MCX), gold futures for August dropped by 1.85% to reach an intraday low of Rs 1,52,712 at around 12:30 pm.
The yellow metal was trading at Rs 1,53,550, down over 1% or Rs 2,044, with an intraday high of Rs 1,54,512, down 0.69% from the previous close. Similarly, silver futures for July were trading at Rs 2,41,763, down Rs 6,774 or around 3%.
Silver touched an intraday low of Rs 2,39,064, marking a 3.81% decline during the session, and also hit an intraday high of Rs 2,51,001, down around 1% from the previous close. In the international markets, COMEX silver was trading at $67.17 per ounce, down 2.79%, while COMEX gold was around 1% lower at $4,324.70 per ounce.
Commodity analysts noted that the selling pressure on precious metals was due to stronger-than-expected US jobs data, raising concerns about the US Federal Reserve maintaining higher interest rates for longer, reducing the attractiveness of non-yielding assets like gold and silver. Geopolitical tensions provided some support for safe-haven demand, but optimism regarding potential US-Iran negotiations and reduced worries over supply disruptions limited interest in precious metals.
Meanwhile, crude oil prices surged, with Brent crude rising by about 4% to trade at $96.90 per barrel, and US West Texas Intermediate (WTI) climbing over 4% to $94.75 per barrel. Asian markets mostly traded negatively, with Japan’s Nikkei dropping nearly 4%, South Korea’s KOSPI falling by 5%, and Hong Kong’s Hang Seng declining around 1%.
