Domestic futures gold hovered around ₹1.54 lakh per 10 grams of 24-karat purity, down about 0.2% from the previous close. Silver prices declined 0.3–0.34% to trade near ₹2.52 lakh per kilogram for 999 purity in intraday trade.
Despite the mild dip, market participants noted that gold continues to hold near elevated levels.
According to the latest Augmont Bullion report, the metal is sustaining above the ₹1.55 lakh per 10 grams mark, with the next upside resistance seen around ₹1.60 lakh per 10 gra,s. Silver, which recently broke above ₹2.44 lakh per kg, may face resistance in the ₹2.55–2.65 lakh per kg range if momentum continues.
Global factors cap gains
Internationally, gold prices retreated after touching a one-month high earlier in the session. Spot gold slipped about 0.6% to around $4,811 per ounce, while US gold futures for June delivery fell 0.3% an ounce.
The decline followed signs of easing geopolitical tensions. Hopes of renewed talks between the US and Iran lifted investor risk appetite, prompting a shift away from safe-haven assets like gold. Analysts noted that bullion has been reacting sharply to headlines from the West Asia, with any progress in negotiations likely to pressure prices in the short term.
At the same time, crude oil prices moved higher amid uncertainty over supply disruptions in the region. Elevated oil prices tend to stoke inflation concerns, which typically support gold. However, the inflationary impact also raises expectations of higher interest rates, which can weigh on non-yielding assets such as gold.
Rate outlook and market positioning
In the US, market expectations for interest rate cuts have shifted. Traders now see roughly a 29% probability of a 25-basis-point rate cut this year, up from about 13% a week ago. Changing rate expectations continue to influence bullion demand, as higher rates reduce the appeal of holding gold.
Analysts said that while gold and silver saw gains overnight, the broader market tone has turned “risk-on,” with equities advancing on optimism around geopolitical developments.
Outlook
In the near term, gold and silver prices are likely to remain sensitive to geopolitical developments, movements in crude oil, and shifts in interest rate expectations. While underlying support from inflation and uncertainty persists, improving risk sentiment could limit sharp upside in bullion prices.
-With agencies inputs
