Gold and silver fall in global markets, MCX remains shut on Eid al-Adha

Gold, silver under pressure amid strong dollar and West Asia tensions. Representation pic

Gold and silver prices declined in international markets on Thursday as a stronger US dollar and renewed geopolitical tensions between the US and Iran pressured sentiment. Concerns over prolonged inflation and uncertainty in global interest rate cuts also added to the weakness in precious metals, reported IANS.

Global bullion prices

Spot gold fell nearly 2 per cent to USD 4,368.99 per ounce, while COMEX gold slipped 1.80 per cent to USD 4,367.90 per ounce, as per the news agency.

As per reports, silver saw an even sharper decline. Spot silver dropped over 3 per cent to USD 71.94 per ounce, while COMEX silver was down 3.56 per cent at USD 72.22 per ounce.

MCX remains shut due to Eid

On the domestic front, the Multi Commodity Exchange of India (MCX) remained closed on Thursday due to Eid al-Adha. However it will reopen for evening trades.

Dollar strength and geopolitical tensions weigh on sentiment

Market experts said gold remained under pressure due to ongoing uncertainty in US-Iran negotiations and a stronger dollar, reported the news agency.

The yellow metal had earlier been trading near the USD 4,450 per ounce level after falling for two straight sessions. Key disagreements between Washington and Tehran continue, especially over Iran's nuclear programme and control of the Strait of Hormuz.

As per IANS, a market expert said, "Rising energy prices are adding to inflation concerns globally, lowering expectations for near-term interest rate cuts from major central banks."

US President Donald Trump has maintained that Washington will not accept a weak agreement and has ruled out easing sanctions, despite Iran seeking financial relief.

Inflation fears and interest rates pressure bullion

Experts said persistent geopolitical risks, higher energy prices, and a strong dollar are likely to keep gold and silver volatile in the near term.

Higher-for-longer interest rate expectations have also reduced demand for bullion, with gold now trading more than 15 per cent below levels seen when the conflict began.

Meanwhile, crude oil prices rose more than 3 per cent after Iran's Revolutionary Guards reportedly claimed an attack on a US airbase in response to American military action, further escalating tensions and inflation concerns.

(With IANS Inputs)