Mumbai — Gold and silver prices traded lower Monday, with precious metals falling by nearly 4 percent amid escalating tensions in West Asia, a volatile global macroeconomic environment and a sharp rise in crude oil prices.
On the Multi Commodity Exchange, gold futures for the August contract fell as much as 1.85 percent, or Rs 2,882, to an intraday low of Rs 1,52,712 around 12:30 p.m.
Gold was later trading at Rs 1,53,550, down more than 1 percent, or Rs 2,044. It touched an intraday high of Rs 1,54,512, still down 0.69 percent, or Rs 1,082, from the previous close.
Silver futures for the July contract were trading at Rs 2,41,763, down Rs 6,774, or about 3 percent.
The white metal touched an intraday low of Rs 2,39,064, a decline of 3.81 percent during the session. It also reached an intraday high of Rs 2,51,001, down about 1 percent from the previous close.
Earlier in the day, gold and silver opened at Rs 1,54,177 and Rs 2,51,001, respectively, on the MCX.
Precious metals also remained under pressure in international markets. COMEX silver was trading at $67.17 per ounce, down 2.79 percent, while COMEX gold was trading about 1 percent lower at $4,324.70 per ounce.
Commodity analysts said precious metals came under selling pressure after stronger-than-expected U.S. jobs data reinforced expectations that the U.S. Federal Reserve could keep interest rates elevated for longer. Higher rates tend to reduce the appeal of non-yielding assets such as gold and silver.
Analysts said geopolitical tensions continued to support some safe-haven demand, but improving sentiment around possible U.S.-Iran negotiations and easing concerns over supply disruptions limited buying interest in precious metals.
Crude oil prices rose sharply. Brent crude gained about 4 percent to trade at $96.90 per barrel, while U.S. West Texas Intermediate climbed more than 4 percent to $94.75 per barrel.
Asian markets largely traded in negative territory, with Japan’s Nikkei tumbling nearly 4 percent, South Korea’s KOSPI dropping 5 percent and Hong Kong’s Hang Seng declining about 1 percent. (Source: IANS)
