Gold Slips, Silver Gains As Global Uncertainty Keeps Markets Volatile

Heavy volatility was seen in the bullion market on Monday, with gold prices slipping sharply while silver continued to hold gains during intraday trade.

On the MCX, June gold futures opened marginally lower at Rs 1,52,487 per 10 grams against the previous settlement of Rs 1,52,530.

As trading progressed, weakness intensified, and the yellow metal dropped Rs 638, or 0.41 per cent, to touch an intraday low of Rs 1,51,892. During the session, prices had also climbed to a high of Rs 1,54,434.

Unlike gold, silver futures for July delivery remained in positive territory. The metal advanced nearly 1.14 per cent to hit Rs 2,64,922 per kg in early trade. Later, silver traded at Rs 2,62,552, showing a gain of Rs 630, while the day’s low stood at Rs 2,61,800.

Market participants attributed the fluctuations to rising concerns over global geopolitical tensions and elevated crude oil prices.

Analysts said fears of disruption in the Strait of Hormuz have renewed worries over India’s import costs and foreign exchange reserves.

According to commodity experts, bullion prices also reacted after US President Donald Trump dismissed Iran’s latest response to a proposed peace arrangement.

Reports indicated that Iran had proposed reopening the Strait of Hormuz and resuming nuclear negotiations, but differences regarding uranium-related demands prevented a breakthrough.

At a BJP gathering in Secunderabad, Prime Minister Narendra Modi urged people to avoid unnecessary gold purchases for the next year as part of efforts to reduce pressure on foreign exchange reserves.

Internationally, COMEX gold traded over 1 per cent lower at $4,678 per ounce, while silver edged slightly higher near $80 per ounce.

Currency markets also remained under stress, with the rupee falling 139 paise to 94.90 against the US dollar in early trade.

Also Read: Gold Climbs During Week As Global Tensions Support Safe-Haven Demand