Silver, meanwhile, showed relative resilience, trading slightly higher near ₹2.43 lakh per kilogram on the MCX.
The domestic trend tracked weakness in international markets, where spot gold hovered below $4,600 per ounce and silver remained under $74 per ounce.
Analysts noted that both metals are trading close to one-month lows.
According to the Augmont Bullion report dated April 29, gold has breached a key support level of $4,650 per ounce (around ₹1.51 lakh per 10 grams), with the next downside target seen at $4,550 an ounce. Silver is also nearing a technical breakdown below $73 per ounce, with further downside possible towards $70 an ounce if the level fails to hold.
Market sentiment has weakened amid a combination of macroeconomic and geopolitical factors.
Elevated crude oil prices—hovering near $110 per barrel following continued tensions in West Asia—have strengthened the US dollar and pushed inflation expectations higher. This has reduced the appeal of non-yielding assets such as gold.
Analysts at Motilal Oswal Financial Services said gold prices declined sharply in the previous session, weighed down by a stronger dollar and rising oil prices. The firm noted that investors are also positioning cautiously ahead of a series of global central bank decisions.
The ongoing geopolitical uncertainty, including stalled negotiations involving Iran and continued disruption in the Strait of Hormuz—an important global oil transit route—has kept energy prices elevated. This has intensified concerns about an inflationary shock, potentially prompting central banks to maintain a “higher-for-longer” interest rate stance.
Recent policy signals have reinforced this outlook. The Bank of Japan held interest rates steady but indicated a hawkish bias, while markets await decisions from the US Federal Reserve, the European Central Bank, and the Bank of England. Key economic data, including U.S. GDP and inflation readings, are also expected to guide market direction in the near term.
Overall, analysts expect gold and silver prices to remain sensitive to global macroeconomic developments, particularly movements in crude oil, currency trends, and central bank policy signals.
