Silver prices in India also moved lower, mirroring losses in international markets, where broader sentiment in bullion remained weak.
Globally, gold prices declined as rising oil prices stoked inflation concerns and reinforced expectations of prolonged higher interest rates. Spot gold fell 0.7% to around $4,705 per ounce, while US gold futures dropped to $4,720.90 an ounce. Spot silver fell 2% to $76.17 per ounce.
Crude oil prices remained firm, with Brent trading above $100 per barrel amid supply concerns and ongoing geopolitical tensions in West Asia. The lack of progress in US-Iran talks and disruptions around the Strait of Hormuz have kept energy markets volatile.
Higher oil prices tend to push up inflation by increasing input costs, which in turn strengthens the case for central banks to keep interest rates elevated. While gold is traditionally seen as a hedge against inflation, higher rates reduce its appeal by increasing the opportunity cost of holding non-yielding assets.
Analysts said the current environment of “ceasefire-plus-blockade” and persistent geopolitical uncertainty could keep inflation elevated for longer, weighing on bullion from a yield perspective.
Recent market trends show bullion prices have remained volatile. Gold had recently approached $4,750 per ounce amid geopolitical support but has since eased as macroeconomic pressures reasserted themselves.
Market participants are now awaiting key US economic data, including jobless claims and PMI readings, for further direction on interest rate expectations. A recent poll suggests the U.S. Federal Reserve may delay rate cuts, with markets pricing in limited easing this year.
On the domestic front, analysts expect gold and silver prices in India to remain range-bound with a slight downside bias in the near term, tracking global trends and macroeconomic developments.
