Gold and silver prices saw a decline on Thursday, with precious metals dropping by up to 2% due to escalating tensions in West Asia. On the Multi Commodity Exchange (MCX), gold futures for August fell by 1% or Rs 1,573 to reach an intraday low of Rs 1,46,444 around 12 pm.
The yellow metal was trading at Rs 1,47,860, down 0.11% or Rs 157, after touching an intraday high of Rs 1,48,089, up 0.04% or Rs 72 from the previous close. In contrast, silver futures for July were at Rs 2,34,500, down Rs 1,005 or 0.43%.
Silver hit an intraday low of Rs 2,30,493, marking a 2.12% decline so far in the session. It also recorded an intraday high of Rs 2,35,402, down 0.04% or Rs 103 from the previous close. Earlier in the day, gold and silver opened at Rs 1,46,518 and Rs 2,31,671, respectively, on the MCX.
In the international market, precious metals faced pressure as well. COMEX silver was trading at $63.90, down over 1.29%, while COMEX gold was 0.68% lower at $4,105.30 per ounce. Analysts noted that precious metals were under pressure as investors evaluated the latest West Asia conflict developments.
They mentioned that gold stabilized near multi-month lows following US military strikes on Iran, hinting at potential diplomatic talks. The easing safe-haven demand and expectations of prolonged higher US interest rates impacted bullion prices negatively. Higher interest rates diminish the attractiveness of non-yielding assets like gold and silver.
Market participants also kept an eye on inflationary pressures from rising energy prices and their probable influence on the US Federal Reserve’s policy direction. Meanwhile, crude oil prices surged, with Brent crude climbing over 2% to trade near $95 per barrel, and US West Texas Intermediate (WTI) crude rising 4% to $93.64 per barrel.
