Gold and silver prices declined on Thursday as weak global cues and renewed geopolitical tensions dampened investor sentiment, pushing bullion lower in both domestic and international markets.
On the Multi Commodity Exchange (MCX), gold August futures fell 0.39% to ₹1,41,301 per 10 grams, while silver September futures slipped 0.44% to ₹2,19,650 per kg during the morning trade.
The decline follows increased uncertainty in global markets after fresh tensions in the Middle East lifted crude oil prices and strengthened the US dollar. A stronger dollar typically makes gold more expensive for overseas buyers, while expectations of higher interest rates reduce the attractiveness of non-yielding assets such as gold and silver.
International bullion prices also remained under pressure, with traders closely watching upcoming US economic data and comments from Federal Reserve officials for fresh clues on the interest rate outlook. Market participants believe that persistent inflation risks could delay any policy easing, adding to the pressure on precious metals.
The weakness in futures prices was reflected in the retail market as well. Gold rates edged lower across major Indian cities, with prices of both 22-carat and 24-carat gold witnessing a modest decline. Silver prices also softened in line with the movement in global markets.
Despite the latest fall, experts believe gold’s long-term outlook remains supported by geopolitical uncertainty, central bank purchases and its traditional role as a safe-haven investment during periods of market volatility. However, they expect prices to remain volatile in the short term, with every major economic or geopolitical development likely to influence investor sentiment.