Gold, silver prices fall upto 1 pc as easing West Asia tensions reduce demand

Gold slips near one-month low. Representational Image

Gold prices fell on the Multi Commodity Exchange (MCX) on Monday. Gold contracts for June 5 opened at Rs 1,51,150, down Rs 382 or 0.25 per cent from the previous close of Rs 1,51,532.

By around 11:30 am, gold was trading at Rs 1,50,623, lower by Rs 729 or 0.48 per cent. During the session, the yellow metal touched a low of Rs 1,50,400, marking a drop of 0.62 per cent, and a high of Rs 1,51,347, reported IANS.

Silver also declines during trading session

Silver prices also saw a decline. Contracts for July 3 opened at Rs 2,50,699, down Rs 238 or 0.09 per cent from the previous close of Rs 2,50,937.

Later in the day, silver was trading at Rs 2,49,600, down Rs 1,337 or 0.53 per cent. The metal hit a low of Rs 2,49,600, falling by 1.05 per cent, and a high of Rs 2,51,231 during the session.

Bullion prices in Mumbai

In Mumbai, silver spot prices stood at Rs 2,44,237 per kilogram, while standard gold (99.5 purity) opened at Rs 1,47,763 per 10 grams and pure gold (99.9 purity) at Rs 1,48,357 per 10 grams, as per PTI reports.

Global markets under pressure

In the international market, both metals remained weak. COMEX gold was down 0.55 per cent at USD 4,619 per ounce, while silver fell 0.48 per cent to USD 76.065 per ounce.

A commodity market expert said, "gold prices extended last week's decline, hovering near one-month lows," pointing to a stronger dollar and rising crude oil prices as key reasons behind the pressure.

Geopolitical signals impact sentiment

The decline in precious metals comes amid signs of easing tensions between the US and Iran. Reduced geopolitical uncertainty has lowered the demand for gold and silver as safe-haven assets.

-Supply risks in Hormuz

At the same time, concerns remain around supply risks in the Strait of Hormuz, which continue to keep inflation worries alive. The expert added that this has led to "a cautiously hawkish stance from major central banks," further weighing on bullion prices.

-Trump's ‘Project Freedom'

US President Donald Trump said the United States would take steps to assist vessels stranded in the Strait of Hormuz. He described the initiative, called "Project Freedom," as a humanitarian effort to help neutral countries.

He stated that the US would guide stranded ships safely through the route but also warned that Iran would face a strong response if any threats arise.

-Crude oil prices also decline

Meanwhile, crude oil prices saw a drop. Brent crude fell 0.61 per cent to USD 107.51 per barrel, while US West Texas Intermediate (WTI) declined 2.77 per cent to USD 99.11 per barrel.

(With IANS Inputs)