Gold and silver prices traded lower on Monday as a stronger US dollar and growing expectations of higher US interest rates offset safe-haven demand arising from escalating geopolitical tensions in the Middle East.
On the Multi Commodity Exchange (MCX), gold futures for the August 5 contract opened at ₹1,42,633 per 10 grams, down ₹845 or 0.58 per cent from the previous close of ₹1,43,478.
During the session, gold fell as much as 1.33 per cent to an intraday low of ₹1,41,557. At around 10 a.m., the contract was trading at ₹1,42,100, down ₹1,378 or 0.96 per cent.
Silver futures for the September 4 contract also declined, falling up to 2.41 per cent to an intraday low of ₹2,17,277 per kilogram. The metal was last trading at ₹2,18,665, down ₹3,999 or 1.80 per cent.
Weakness was also reflected in international markets, where COMEX gold declined 1.27 per cent to around $4,061 an ounce, while COMEX silver fell 0.58 per cent to approximately $58 an ounce.
Market experts attributed the decline in precious metal prices to the strengthening US dollar and elevated US Treasury yields, which reduced the appeal of non-yielding assets such as gold. They also said that renewed tensions between the United States and Iran have raised concerns over persistent inflation, particularly due to higher crude oil prices, reinforcing expectations of a tighter monetary policy by the US Federal Reserve.
According to analysts, investors will closely monitor developments in the US-Iran conflict, upcoming US economic data and signals from the US Federal Reserve for further direction on interest rates and precious metal prices.
-ANI
