Internationally, COMEX gold traded at $4,703.80 per ounce, down 0.57%. In contrast, COMEX silver rose 0.48% to $81.255 per ounce.
Analysts said uncertainty around the US-Iran conflict and the closure of the Strait of Hormuz pushed oil prices sharply higher and strengthened the dollar, limiting gold’s appeal despite its safe-haven status.
Brent crude futures climbed over 3% to $104.67 a barrel, while US crude rose to $98.82 a barrel after US President Donald Trump rejected Iran’s response to a proposed peace framework. Reports suggested Tehran sought sanctions relief, reparations and recognition of its control over the Strait of Hormuz.
“The conflict in the West Asia is now entering its 11th week,” Bruce Kasman, global head of economics at JPMorgan, said, adding that energy prices had surged but were not yet at levels that would derail global growth.
The dollar index strengthened amid risk aversion, with the Japanese yen and euro weakening against the greenback. A firmer dollar generally makes bullion more expensive for holders of other currencies.
In the domestic market, analysts expect gold and silver prices to remain range-bound this week as traders track developments in US-Iran peace negotiations along with inflation and GDP data from major economies.
According to Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, gold prices are witnessing a consolidative trend, while silver may continue to outperform amid improving industrial demand and supply tightness.
On the Multi Commodity Exchange (MCX), gold futures had gained nearly 1% last week to settle at ₹1.52 lakh per 10 grams, while silver surged 4.4% to ₹2.61 lakh per kg.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said softer US Treasury yields and a weaker dollar in recent sessions had supported bullion despite volatility in global markets.
Analysts also said investors will monitor US inflation data, trade developments, and comments from global central banks for further cues on bullion prices.
–With agencies inputsALSO READ | Why PM Modi wants Indians to avoid buying gold for a year
