Gold, silver prices fall up to 4 pc amid geopolitical tensions
Mumbai, June 8
Gold and silver prices traded lower on Monday, with precious metals falling by nearly 4 per cent amid escalating tensions in the West Asia conflict, a volatile global macroeconomic environment and surging crude oil prices.
On the Multi Commodity Exchange (MCX), gold futures (August contract) declined as much as 1.85 per cent or Rs 2,882 to hit an intraday low of Rs 1,52,712 at around 12:30 pm.
The yellow metal was trading at Rs 1,53,550, down over 1 per cent or Rs 2,044. It touched an intraday high of Rs 1,54,512, down 0.69 per cent or Rs 1,082 from the previous close.
Similarly, silver futures (July contract) were trading at Rs 2,41,763, down Rs 6,774 or around 3 per cent.
The white metal touched an intraday low of Rs 2,39,064, declining 3.81 per cent during the session. It also touched an intraday high of Rs 2,51,001, down around 1 per cent from the previous close.
Earlier in the day, gold and silver opened at Rs 1,54,177 and Rs 2,51,001, respectively, on the MCX.
In international markets, precious metals also remained under pressure. COMEX silver was trading at $67.17 per ounce, down 2.79 per cent, while COMEX gold was trading around 1 per cent lower at $4,324.70 per ounce.
According to commodity analysts, precious metals witnessed selling pressure after stronger-than-expected US jobs data reinforced concerns that the US Federal Reserve could keep interest rates elevated for longer, reducing the appeal of non-yielding assets such as gold and silver.
They added that while geopolitical tensions continued to support safe-haven demand to some extent, improving sentiment around possible US-Iran negotiations and easing concerns over supply disruptions limited buying interest in precious metals.
Meanwhile, crude oil prices surged sharply, with Brent crude rising around 4 per cent to trade at $96.90 per barrel, while US West Texas Intermediate (WTI) climbed more than 4 per cent to $94.75 per barrel.
Asian markets largely traded in negative territory, with Japan's Nikkei tumbling nearly 4 per cent, South Korea's KOSPI dropping 5 per cent and Hong Kong's Hang Seng declining around 1 per cent.
— IANS
Reader Comments
As someone who invested heavily in gold ETFs last year, this dip is concerning. But I think it's temporary. The geopolitical tensions in West Asia won't resolve quickly, and safe-haven demand will bounce back. Good time to average down for long-term investors.
The US jobs data is just an excuse. The real issue is the Fed playing games with interest rates. Meanwhile, our rupee keeps weakening against the dollar, so even if global gold prices drop, we Indians still pay more. Smart move was to buy physical gold during Diwali last year.
I'm watching silver closely. Down 3.81% intraday is a big drop! Industrial demand for silver is rising due to solar panels and electronics. If you have patience, this could be a great entry point. But careful, market volatility is high with crude above $95.
Usual story: global tensions rise, gold should go up, but instead it falls. Seems like the market is manipulated by big players. For common people like us, gold is still a necessity for security, not just investment. I'll wait for Rs 1,50,000 levels before buying.
Interesting how Indian markets react differently. In the US, gold is seen as inflation hedge. Here, it's part of culture. My in-laws always tell me to buy gold during dips. Maybe I should listen to them this time. Though with WTI at $94, petrol prices will hurt.
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