In India, MCX gold fell below the ₹1.52 lakh mark, while MCX silver saw a sharper correction in trade, reflecting weakness in international bullion.
MCX silver also declined by nearly ₹1,000 in early trade before stabilising.
On the global front, spot gold slipped to around $4,650–$4,680 per ounce, while spot silver erased early gains to trade below the $80 per ounce level.
Geopolitical tensions, oil spike weigh on bullion
Analysts said renewed uncertainty over US–Iran negotiations and rising crude oil prices have pushed inflation concerns higher, keeping pressure on bullion.
“Gold prices fell in early morning trade after posting weekly gains, pressured by a firm dollar and elevated oil prices after President Trump rejected Iran’s latest response to a US-backed peace proposal,” said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services.
He added that while bullion had gained on hopes of diplomatic progress earlier, sentiment reversed after the breakdown in talks revived concerns around the Strait of Hormuz and global energy flows.
Inflation worries, dollar strength cap gold gains
Experts said higher crude oil prices are fuelling inflation fears, which in turn are impacting expectations on interest rates — a key factor for non-yielding assets like gold.
According to Gaurav Garg, Research Analyst at Lemonn Markets, gold prices slipped while silver showed relative resilience amid steady retail demand linked to seasonal buying.
India market follows global cues
Domestic bullion mirrored global weakness, with traders also watching currency movement and crude oil volatility for further direction.
Analysts said Indian investors will closely track upcoming US inflation data and Federal Reserve commentary, which could determine near-term movement in gold and silver.
Overall, experts expect bullion to remain range-bound with a negative bias unless geopolitical tensions escalate further or dollar strength eases.
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