Gold and silver tumbled sharply, with MCX gold hitting Rs 1,44,212 and silver Rs 2,25,763, as fading Fed rate-cut hopes, rising inflation, and geopolitical tensions pressured global markets
-1774849760790_d.png "Gold posts sharpest monthly fall since 2008, silver down nearly 30 percent amid weak global cues")
Gold and silver plunge as Fed rate cut hopes fade. Representational Image
Gold and silver prices witnessed sharp losses on Monday, tracking declines in global bullion markets amid fading hopes of a US Federal Reserve rate cut and rising inflation concerns.
On the Multi Commodity Exchange (MCX), gold contracts for June 5 delivery opened 0.27 per cent lower at Rs 1,46,850 per 10 grams, as against the previous close of Rs 1,47,255. The yellow metal declined sharply during the session, falling as much as Rs 3,043, or 2.06 per cent, to hit an intra-day low of Rs 1,44,212 per 10 grams.
Silver futures (May 5) also came under pressure, declining as much as 0.96 per cent to Rs 2,25,763 per kg, compared to the previous close of Rs 2,27,954.
In the international market, gold prices fell as a surge in energy prices due to the ongoing US-Iran conflict heightened inflation concerns and dampened expectations of interest rate cuts by the US Federal Reserve this year.
Spot gold declined 1.61 per cent to USD 4,420.48 per ounce, while spot silver dropped around 3 per cent to USD 67.69 per ounce.
In addition, COMEX gold fell 1.69 per cent to USD 4,447.50, while COMEX silver slipped nearly 3 per cent to USD 67.72.
Gold prices have declined around 15 per cent so far this month, marking their steepest monthly fall since October 2008. The drop has been driven by a stronger US dollar, which has gained over 2 per cent since the US-Israel conflict with Iran began on February 28. Silver prices have also plunged nearly 30 per cent from their March peak.
Analysts said gold continues to trade with a weak undertone despite intermittent safe-haven demand arising from geopolitical tensions.
They further stated that the near-term outlook for precious metals remains cautious, with prices likely to be driven by macroeconomic cues, interest rate expectations and geopolitical developments.
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