Gold, Silver Prices Fall As Fed Signals And Easing Tensions Weigh On Bullion

Gold and silver prices declined on Thursday as traders responded to signals from the US Federal Reserve and a reduction in geopolitical uncertainty.

On the Multi Commodity Exchange (MCX), August gold futures fell by up to 1.37 per cent, or ₹2,111, reaching an intraday low of ₹1,51,768.

The contract later traded at ₹1,51,797, reflecting a loss of 1.35 per cent, or ₹2,082, compared to the previous settlement of ₹1,53,879.

July silver futures also remained under pressure and were quoted at ₹2,44,945, down ₹6,862, or 2.73 per cent, from the previous close of ₹2,51,807.

Market participants linked the decline in precious metals to rising US Treasury yields and continued strength in the US dollar, both of which tend to diminish the appeal of bullion investments.

The Federal Reserve further dampened investor sentiment by keeping benchmark interest rates unchanged while signalling that it could consider additional policy tightening to bring inflation under control.

Analysts observed that the easing of tensions after the interim agreement between the United States and Iran reduced the need for investors to seek refuge in safe-haven assets such as gold.

Despite broader weakness across the precious metals segment, silver found some support from expectations of sustained industrial consumption.

Experts pointed to continued investment in artificial intelligence infrastructure, data centres, renewable energy developments, and energy storage technologies, particularly in China.

Global precious metals markets mirrored the downward trend, with COMEX silver falling nearly 3 per cent to $68.76 and COMEX gold declining by more than 1 per cent to $4,318.90.

Crude oil prices also traded lower during the session.

Brent crude slipped 1.64 per cent to around $78 a barrel, while US West Texas Intermediate (WTI) crude dropped 2 per cent to approximately $75 a barrel.

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