Gold and silver prices in India saw a marginal decline on Monday, reflecting cautious sentiment in the bullion market amid global economic uncertainty. The slight drop comes as investors closely watch international developments, including movements in crude oil prices and expectations regarding interest rate decisions by the US Federal Reserve.
In the domestic market, the price of 24-carat gold slipped by ₹10 to ₹1,59,650 per 10 grams. Prices of 22-carat gold also registered a minor fall, mirroring the overall subdued trend in the precious metals segment. Despite the decline, the movement remained limited, suggesting a relatively stable market with only mild corrections.
Silver prices also followed a similar trend. The metal dropped by ₹100 to trade at ₹2,74,900 per kilogram in early trade. The small decline indicates that the silver market, like gold, is currently experiencing limited fluctuations rather than sharp price swings.
Market analysts say global factors are largely influencing the direction of bullion prices. Rising crude oil prices have raised concerns about inflation, which in turn affects expectations surrounding monetary policy in major economies. Investors are particularly focused on signals from the US Federal Reserve regarding future interest rate decisions.
When interest rates remain high, interest-bearing investments such as bonds become more attractive to investors. This typically reduces the appeal of non-yielding assets like gold, leading to pressure on prices in the short term.
At the same time, geopolitical tensions in the Middle East are adding uncertainty to global financial markets. Conflicts involving major global powers often increase demand for safe-haven assets like gold. However, the impact of such tensions is currently being balanced by concerns over interest rates and inflation.
Experts believe bullion prices may remain volatile in the coming days as global economic conditions continue to evolve. Investors are expected to monitor developments in international markets, energy prices, and central bank policies before making significant trading decisions.
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