Gold, Silver Slide Up To 2% As Stronger Dollar Weighs On Bullion

Gold and silver prices traded lower on Monday, falling by as much as 2 per cent as a stronger US dollar and expectations of higher US interest rates outweighed safe-haven demand despite escalating geopolitical tensions in the Middle East.

On the Multi Commodity Exchange (MCX), gold futures for August 5 opened at ₹1,42,633 per 10 grams, down ₹845 or 0.58 per cent from the previous close of ₹1,43,478.

During early trade, the yellow metal declined as much as 1.33 per cent, falling ₹1,921 to an intraday low of ₹1,41,557.

At the last count, gold was trading at ₹1,42,100, down ₹1,378 or 0.96 per cent.

Silver futures for September 4 also witnessed sharp losses.

The white metal fell by as much as 2.41 per cent, or ₹5,387, to an intraday low of ₹2,17,277. It later traded at ₹2,18,665, down ₹3,999 or 1.80 per cent, after touching an intraday high of ₹2,18,844.

Weakness was also evident in global markets. COMEX gold declined 1.27 per cent to $4,061 per ounce, while COMEX silver slipped 0.58 per cent to around $58 per ounce.

Experts said a stronger dollar, higher Treasury yields and prolonged rate concerns pressured bullion, while rising oil prices revived inflation fears.

Market participants will now closely watch further developments in the US-Iran conflict, upcoming US economic data and comments from Federal Reserve officials for signals on future interest rate decisions and the near-term direction of bullion prices.

The US Dollar Index rose to 100.90, while Iran reportedly targeted US military bases in Kuwait, Bahrain and Jordan, adding to market uncertainty.

Also Read: Crude Oil Jumps Over 4% As US-Iran Tensions Escalate