Gold and Silver Prices Decline Amid West Asia Tensions
Market Update on Precious Metals
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Mumbai, June 11: On Thursday, gold and silver prices experienced a downturn, with declines reaching up to 2% due to rising tensions in the West Asia region.
Gold futures for August on the Multi Commodity Exchange (MCX) fell by 1% or Rs 1,573, reaching an intraday low of Rs 1,46,444 around noon.
The price of gold was recorded at Rs 1,47,860, reflecting a slight decrease of 0.11% or Rs 157. It peaked at Rs 1,48,089, marking a minor increase of 0.04% or Rs 72 from the previous close.
In contrast, July silver futures were priced at Rs 2,34,500, down by Rs 1,005 or 0.43%.
The price of silver hit an intraday low of Rs 2,30,493, a decline of 2.12% during the trading session. It reached an intraday high of Rs 2,35,402, down 0.04% or Rs 103 from the last close.
Earlier in the trading day, gold and silver opened at Rs 1,46,518 and Rs 2,31,671, respectively, on the MCX.
Internationally, precious metals faced similar pressures. COMEX silver traded at $19.90, down over 1.29%, while COMEX gold was priced at $1,105.30 per ounce, reflecting a decrease of 0.68%.
Commodity analysts noted that the pressure on precious metals was due to investors evaluating the latest developments in the West Asia conflict. Gold remained stable near multi-month lows following the US military's confirmation of its recent strikes on Iran, which raised hopes for a resumption of diplomatic talks.
They indicated that the reduced demand for safe-haven assets, combined with expectations of prolonged higher US interest rates, negatively impacted bullion prices. Elevated interest rates diminish the attractiveness of non-yielding assets like gold and silver.
Market participants are also keeping a close eye on inflationary trends driven by increasing energy prices and their potential effects on the US Federal Reserve's policy decisions.
In related news, crude oil prices surged significantly, with Brent crude increasing by over 2% to trade near $ per barrel, while US West Texas Intermediate (WTI) crude rose by 4% to $64 per barrel.