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Gold and silver prices declined sharply in domestic and global markets as a stronger US dollar and rising oil prices weighed on sentiment. MCX gold fell nearly 2% intraday, while silver also saw significant losses.
MCX Gold Opens Lower, Silver Declines as Oil Prices Rebound
New Delhi: Gold and silver prices fell sharply in both domestic and international markets on Tuesday. Gold opened gap-down on the Multi Commodity Exchange (MCX), falling by up to 2%. Gold opened at ₹1,38,411 per 10 grams and fell to ₹1,36,762 intraday. Meanwhile, in the international market, gold traded with a decline of about 1.5% on COMEX.
According to experts, the main reason for the decline in gold and silver prices is the strong US dollar and concerns about rising inflation. Although US-Iran tensions have eased slightly, the market expects the Federal Reserve and other central banks to hold off on cutting interest rates for the time being. This is driving investors away from safe-haven investments like gold.
The rise in WTI crude oil prices is also putting pressure on gold. The dollar strengthened as oil prices surged more than 4% to near $91 per barrel. The US dollar index also hovered around 99, weakening demand for precious metals.
Silver prices fell by more than 2.5% on COMEX. Silver prices remained under pressure in the domestic market as well. This clearly indicates that investors are currently shifting towards riskier, higher-yielding assets.
According to expert Jatin Trivedi (LKP Securities), MCX gold may remain in the range of ₹1,28,000 to ₹1,40,000. A breakout above ₹1,40,000 could push the price up to ₹1,45,000 to ₹1,50,000. If it falls below ₹1,28,000, it could slip to ₹1,20,000.
Experts believe that market volatility may persist. Therefore, investors should trade cautiously and make significant decisions carefully.
Experts say that if geopolitical tensions further decrease and there is clarity regarding interest rates, gold could see a sharp recovery. Gold could even reach $5,000 per ounce in the international market.
Overall, global economic factors and market expectations are the main reasons behind the decline in gold and silver prices. In the coming days, investors will continue to monitor the dollar, oil prices, and central bank policies.
