02 May,2026 02:18 PM IST | New Delhi | mid-day online correspondent
Gold slips on global tensions and rate worries. Representational Pic
Gold prices witnessed a decline over the past week, slipping by 0.81 per cent as geopolitical tensions and macroeconomic concerns weighed on investor sentiment. Currently, gold futures stand at Rs 1,51,363, while silver futures stand at Rs 2,47,500 per kg, as per IANS.
The lack of progress in negotiations between the United States and Iran reduced expectations of near-term interest rate cuts, putting pressure on the yellow metal.
In the domestic market, gold prices followed a similar trend of softening. The price of 10 grams of 24-carat gold stood at Rs 1,50,263 on Thursday, down from Rs 1,51,495 at the beginning of the week, according to data from the India Bullion and Jewellers Association, reported IANS.
Silver prices, while also affected by broader market trends, have shown relative resilience. COMEX silver continues to trade above the USD 76 mark, maintaining a constructive long-term outlook. However, like gold, it faces a cautious near-term environment.
Analysts observe that both gold and silver are currently in a phase of corrective consolidation following their recent rally driven by safe-haven demand, reported the news agency.
International bullion markets remained volatile, with gold falling up to 1.2 per cent on Friday after a prior gain, as rising energy costs and stronger US Treasury yields weighed against safe-haven demand.
Prices have declined nearly 14 per cent since tensions around the US-Iran conflict escalated earlier this year, with the lack of a breakthrough in negotiations capping upside. While Iran has reportedly proposed fresh talks through intermediaries, both sides remain hesitant to make the first move.
Ongoing concerns over the Strait of Hormuz and potential oil supply disruptions continue to keep a geopolitical risk premium in prices, limiting sharper declines.
Economic data from the United States has added another layer of complexity. The headline PCE price index rose to 3.5 per cent in March, marking its highest level in nearly three years. This has reinforced expectations that interest rates may remain higher for longer.
Higher interest rates typically reduce the appeal of non-yielding assets like gold, as investors shift toward instruments offering better returns. Analysts note that rising energy prices could further contribute to inflationary pressures, strengthening the case for prolonged tight monetary policy.
The overall outlook for precious metals remains mixed. COMEX gold is trading within the USD 4,620 to USD 4,650 range, with key resistance levels seen between USD 4,700 and USD 4,760. A decisive breakout above these levels could determine the next phase of price movement.
For now, markets are witnessing intermittent profit booking at higher levels, while selective buying emerges during dips. Although safe-haven demand has eased slightly, it continues to provide support amid ongoing global uncertainties.
(With IANS Inputs)
