Gold and silver prices declined slightly in domestic markets on Monday as a stronger US dollar weighed on bullion demand despite rising geopolitical tensions and higher crude oil prices.
In the national capital, 24-carat gold slipped by ₹10 to ₹1,63,630 per 10 grams, while 22-carat gold was priced at around ₹1,49,990 per 10 grams, according to market data. Silver also recorded a marginal fall, declining ₹100 to ₹2,84,900 per kilogram in major markets.
The small drop in precious metal prices comes amid volatility in global commodity markets. Analysts said the strengthening of the US dollar has reduced the attractiveness of gold and silver for international investors. When the dollar rises, bullion becomes more expensive for buyers using other currencies, which often leads to weaker demand.
At the same time, geopolitical tensions have increased following the ongoing conflict involving the United States and Iran. The tensions have pushed global crude oil prices sharply higher, with Brent crude crossing the $100 per barrel mark. Rising oil prices have triggered concerns about global inflation and economic uncertainty.
Normally, geopolitical tensions and economic uncertainty tend to boost demand for safe-haven assets such as gold. However, analysts say the strong dollar and expectations of higher interest rates have limited gains in bullion prices.
In the international market, gold prices also slipped during Asian trading hours, while silver registered sharper losses. Reports indicate that gold declined by more than 2 per cent globally, while silver dropped over 3 per cent as commodity markets reacted to the surge in oil prices and currency movements.
There is a close watch on the global macroeconomic developments, including the strength of the US dollar, inflation trends and crude oil price movements. These factors are expected to play a key role in determining the near-term direction of bullion prices.
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