NEW DELHI– Gold and silver prices declined sharply on Monday, tracking weakness in global bullion markets as fading expectations of a U.S. Federal Reserve rate cut and rising inflation concerns weighed on sentiment.
On the Multi Commodity Exchange (MCX), gold futures for June 5 delivery opened 0.27 percent lower at Rs 1,46,850 per 10 grams, compared with the previous close of Rs 1,47,255. The metal extended losses during the session, dropping as much as Rs 3,043, or 2.06 percent, to hit an intraday low of Rs 1,44,212 per 10 grams.
Silver futures for May 5 delivery also came under pressure, falling up to 0.96 percent to Rs 2,25,763 per kilogram from the previous close of Rs 2,27,954.
In global markets, bullion prices weakened as a surge in energy costs linked to tensions involving the United States and Iran heightened inflation worries and reduced expectations of interest rate cuts this year.
Spot gold fell 1.61 percent to $4,420.48 per ounce, while spot silver dropped about 3 percent to $67.69 per ounce. COMEX gold declined 1.69 percent to $4,447.50, and COMEX silver slipped nearly 3 percent to $67.72.
Gold has fallen roughly 15 percent so far this month, marking its steepest monthly decline since October 2008. The drop has been driven in part by a stronger U.S. dollar, which has gained more than 2 percent since the conflict escalated in late February. Silver prices have also retreated sharply, down nearly 30 percent from their March peak.
Analysts said gold continues to trade with a weak bias despite intermittent safe-haven demand triggered by geopolitical tensions.
They added that the near-term outlook for precious metals remains cautious, with prices likely to be influenced by macroeconomic conditions, interest rate expectations, and geopolitical developments. (Source: IANS)
