Gold, Silver Prices Fall As Strong Dollar Weighs On Bullion

Gold and silver prices traded lower on Monday as weak global sentiment, a stronger US dollar and expectations of prolonged high US interest rates weighed on precious metals.

On the Multi Commodity Exchange (MCX), August gold futures opened at ₹1,44,180 per 10 grams before slipping under selling pressure.

By around 10 AM, gold was trading at ₹1,43,470, down ₹692 or 0.48 per cent. During the session, the yellow metal touched a high of ₹1,44,180 and a low of ₹1,43,454 per 10 grams.

Silver futures for September also edged lower. After opening at ₹2,23,912 per kg, the white metal traded at ₹2,23,174, down ₹298 or 0.13 per cent. It touched an intraday high of ₹2,24,248 and a low of ₹2,22,641 per kg.

International markets mirrored the weakness, with COMEX gold declining 0.41 per cent to $4,078 per ounce, while COMEX silver fell more than 1 per cent to $58.52 per ounce.

Commodity market experts said bullion remained under pressure as investors assessed renewed geopolitical tensions and expectations that the US Federal Reserve could keep interest rates higher for longer.

A stronger US dollar and elevated US Treasury yields also reduced the appeal of non-yielding assets such as gold.

Analysts added that safe-haven demand received only limited support after renewed exchanges between the US and Iran heightened uncertainty despite the fragile ceasefire.

Fresh attacks on vessels near the Strait of Hormuz also revived concerns over regional stability.

Investors will watch key US economic data for clues on the Federal Reserve’s interest rate outlook.

The rupee opened five paise higher at 94.35 against the US dollar, while Brent crude and WTI crude gained around 1 per cent and over 2 per cent, respectively.

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