On the Multi Commodity Exchange (MCX), gold futures were 0.78% lower at ₹1.51 lakh per 10 grams of 24-karat purity. Silver futures also slipped 2.27% to ₹2.37 lakh per kilogram.
The decline in domestic bullion mirrored global trends, where gold prices fell to a near one-week low. Spot gold dropped 0.7% to $4,717 per ounce, while US gold futures for June delivery were down 1% at $4,739 an ounce.
Sentiment in precious metals weakened as the US dollar strengthened and crude oil prices climbed above $100 per barrel following the breakdown of US-Iran peace talks. Escalating tensions in West Asia have raised concerns over supply disruptions, pushing oil prices higher and fuelling fears of persistent inflation.
Market participants said the surge in energy prices has reduced expectations of interest rate cuts by the US Federal Reserve this year, weighing on non-yielding assets such as gold.
A stronger dollar has also made bullion more expensive for holders of other currencies, further pressuring prices.
Analysts noted that while geopolitical risks and inflation typically support gold as a safe-haven asset, the prospect of elevated interest rates has limited its upside.
Among other precious metals, silver fell around 2% in global markets, while platinum edged lower and palladium posted modest gains.
Traders are expected to track further developments in the West Asia, movements in crude oil prices, and upcoming macroeconomic data for cues on bullion’s near-term direction.
–With agencies inputs
