Gold Drops Rs 2,186 to Rs 1,59,792, Silver Tumbles 3.78% to Rs 2,80,091 as Strong Dollar and Rising Crude Weigh on Precious Metals
Gold and silver prices fell sharply in domestic trade on Friday, with both metals declining by up to 4 per cent as a strengthening dollar index put pressure on precious metals across global markets.
On the Multi Commodity Exchange, gold futures for June 5 dropped as much as 1.52 per cent or Rs 2,478 to touch an intraday low of Rs 1,59,500 as of 10:45 am. At last count, gold was trading at Rs 1,59,792, down 1.34 per cent or Rs 2,186 from the previous close. It hit an intraday high of Rs 1,60,992, which was 0.6 per cent or Rs 986 lower than Thursday’s close. Gold opened the session at Rs 1,60,790 on the MCX.
Silver came under heavier selling pressure. Futures for July 3 plunged 4.12 per cent or Rs 12,000 to an intraday low of Rs 2,79,102. The white metal was last trading at Rs 2,80,091, down 3.78 per cent or Rs 11,011 from the previous close, after touching an intraday high of Rs 2,83,219 — itself a decline of 2.7 per cent. Silver opened at Rs 2,80,000 on the MCX.
Global Markets Also Under Pressure
The weakness extended to international markets. COMEX gold was trading 1.54 per cent lower at $4,615 per ounce, while COMEX silver declined 4.47 per cent to $81.49 per ounce.
Commodity market experts said gold prices remained under pressure globally as rising US inflation strengthened expectations that the US Federal Reserve may keep interest rates elevated for longer. They pointed to persistent geopolitical tensions in West Asia and disruptions to energy shipments through the Strait of Hormuz as factors fuelling inflationary concerns and supporting the dollar — both of which weigh on precious metals.
On silver, experts noted that losses extended amid broader weakness in the metals complex, although the metal continued to find support from expectations of strong industrial demand from the electronics and solar energy sectors.
Crude Oil Moves Higher
Crude oil prices moved in the opposite direction, gaining more than 1 per cent on the day. International benchmark Brent crude rose 1.57 per cent to $107.38 per barrel, while US West Texas Intermediate advanced 1.72 per cent to $102.92 per barrel.