Gold, Silver Prices Fall Up To 5.6% As Oil Prices Surge

Gold and silver prices witnessed a sharp decline on Thursday, falling by as much as 5.6 per cent after fresh geopolitical developments dampened investor sentiment.

On the Multi Commodity Exchange (MCX), gold futures for June 5 dropped up to 2.31 per cent, or Rs 3,563, touching an intraday low of Rs 1,50,145 by 10:30 AM.

At its highest point during the session, the metal traded 0.79 per cent lower at Rs 1,52,490.

Silver futures for May 5 also registered a steep fall, plunging 5.59 per cent, or Rs 13,613, to hit an intraday low of Rs 2,29,888, though it briefly rose to Rs 2,42,800 earlier in the day.

In international markets, spot gold declined 2.26 per cent to $4,650.30, while spot silver dropped 4.7 per cent to $71.50.

COMEX gold traded at $4,813, down 2.73 per cent, and COMEX silver fell around 6 per cent to $71.

Analysts noted that both metals remain under pressure, with weak price structures and limited support from ongoing geopolitical tensions.

Broader macroeconomic uncertainty continues to influence market direction, keeping the near-term outlook cautious.

The decline in bullion prices followed remarks indicating that the ongoing Middle East conflict could be nearing an end, though accompanied by warnings of potential military escalation.

The absence of clear progress towards a ceasefire disappointed investors who had anticipated stability.

At the same time, oil markets moved in the opposite direction. Brent crude futures surged up to 5.24 per cent to $106.47 per barrel, while US WTI crude rose 4.5 per cent to $104.64.

Concerns over disruptions in the Strait of Hormuz added to upward pressure on oil prices.

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