Gold and silver prices experienced significant declines on Friday in domestic trading, with both precious metals falling by up to 4% due to a stronger dollar index. On the Multi Commodity Exchange (MCX), gold futures for June 5 dropped by 1.52% or Rs 2,478 to hit an intraday low of Rs 1,59,500 by 10:45 am. Meanwhile, silver futures for July 3 faced heavier pressure, plummeting by 4.12% or Rs 12,000 to Rs 2,79,102.
At the latest update, gold was trading at Rs 1,59,792, down by 1.34% or Rs 2,186, after reaching an intraday high of Rs 1,60,992, which was 0.6% or Rs 986 lower than the previous close. Conversely, silver was priced at Rs 2,80,091, marking a 3.78% decrease or Rs 11,011 from the previous close, with an intraday high of Rs 2,83,219, reflecting a 2.7% decline.
The weakness in gold and silver prices was not limited to domestic markets but was also evident internationally. COMEX gold was down by 1.54% at $4,615 per ounce, while COMEX silver saw a 4.47% decline to $81.49 per ounce. Market experts attributed the pressure on gold prices to the anticipation of prolonged elevated interest rates by the US Federal Reserve due to rising US inflation.
They also highlighted that geopolitical tensions in West Asia and disruptions in energy shipments through the Strait of Hormuz have contributed to inflation concerns, bolstering the US dollar and weighing on precious metals. Additionally, silver prices continued their downward trend amidst a broader weakness in the metals sector, despite expectations of strong industrial demand from sectors like electronics and solar energy.
In contrast, crude oil prices saw an increase, with Brent crude rising by 1.57% to $107.38 per barrel in the international market. Similarly, US West Texas Intermediate (WTI) crude also advanced by 1.72% to $102.92 per barrel.
