COMEX gold futures fell 1.1% to $4,734.60 per ounce in the latest trade. Silver futures dropped 2.63% to $74.47 per ounce, retreating from the previous close of $74.85 an ounce.
The decline in bullion comes as investors reassess the trajectory of interest rates following a sharp surge in crude oil prices triggered by heightened tensions in West Asia. Higher oil prices have raised concerns about persistent inflation, which could keep global central banks cautious and interest rates elevated for longer.
A stronger dollar has also weighed on precious metals, reducing the appeal of non-yielding assets such as gold. Analysts noted that rising US Treasury yields further limited upside in bullion, as fixed-income instruments become relatively more attractive.
Despite the day’s losses, gold and silver had posted strong gains in the previous week, supported by safe-haven demand amid geopolitical uncertainty and signs of improving physical demand in key markets such as India and China.
Market participants expect volatility in bullion prices to remain elevated in the near term, tracking developments in the West Asia, movements in crude oil, and key macroeconomic indicators including US inflation data and central bank commentary.
Traders will also monitor upcoming economic data from major economies, including China and the Eurozone, for further cues on global growth and demand outlook, which could influence the trajectory of precious metals.
–With agencies inputs
