Gold, Silver Prices Fall Sharply As Dollar Strength; Rising Crude Oil Weigh On Metals

Gold and silver prices declined sharply on Friday, with both precious metals falling by up to 4 per cent in domestic trade amid strength in the dollar index and a rise in crude oil prices.

On the Multi Commodity Exchange (MCX), gold futures for June 5 dropped as much as 1.52 per cent, or Rs 2,478, to hit an intraday low of Rs 1,59,500 around 10:45 AM.

At the last count, the yellow metal was trading at Rs 1,59,792, down 1.34 per cent or Rs 2,186 from the previous close. It had touched an intraday high of Rs 1,60,992 earlier in the session.

Silver futures for July 3 witnessed steeper losses, plunging 4.12 per cent or Rs 12,000 to Rs 2,79,102. The white metal was later trading at Rs 2,80,091, down 3.78 per cent or Rs 11,011. Silver recorded an intraday high of Rs 2,83,219 during the session.

Weakness in precious metals was also visible in global markets. COMEX gold declined 1.54 per cent to $4,615 per ounce, while COMEX silver slipped 4.47 per cent to $81.49 per ounce.

Commodity market experts said gold prices remained under pressure globally as rising US inflation strengthened expectations that the US Federal Reserve could maintain elevated interest rates for a longer period.

Analysts noted that geopolitical tensions in West Asia and disruptions in energy shipments through the Strait of Hormuz fuelled inflation concerns and supported the US dollar, further weighing on precious metals.

Crude oil prices gained over 1 per cent, with Brent crude rising 1.57 per cent to $107.38 per barrel and WTI crude advancing 1.72 per cent to $102.92 per barrel.

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