Gold and silver prices declined sharply in India on Wednesday as a stronger US dollar, rising oil prices and growing expectations of higher US interest rates triggered a broad sell-off in global bullion markets, according to media reports.
Gold prices fell by Rs 2,677, or 1.76%, to Rs 1,49,766 per 10 grams, while silver dropped Rs 4,347, or 1.82%, to Rs 2,34,181 per kilogram, according to market data.
Media reports said the decline followed a slide in international bullion prices, with gold touching its lowest level in nearly 11 weeks. Spot gold traded near $4,181 an ounce, down about 1.9%, while US gold futures for August delivery fell 1.9% to $4,204.70 an ounce.
According to media reports, investors have reassessed expectations for US monetary policy, leading to increased pressure on precious metals. A stronger dollar has made gold more expensive for holders of other currencies, while higher oil prices have fuelled inflation concerns and raised expectations that the US Federal Reserve could keep interest rates elevated for longer.
Higher interest rates generally reduce the appeal of gold because the metal does not provide a fixed income.
Analysts quoted in media reports said rising bond yields and dollar strength have weighed heavily on bullion prices, with traders increasingly pricing in the possibility of a US rate hike before the end of the year.
According to media reports, the decline also came amid renewed tensions between the United States and Iran, prompting investors to reassess the outlook for inflation, energy prices and interest rates.
Commodity market analysts said bullion markets witnessed broad-based liquidation following strong US labour-market data and expectations of tighter monetary policy. Stronger-than-expected US housing data and signals of possible interest-rate increases in Japan also added pressure on precious metals, according to media reports.
Markets are now closely watching upcoming US inflation data. Analysts said a higher-than-expected Consumer Price Index reading could strengthen the case for tighter monetary policy and place further pressure on gold and silver.
According to media reports, analysts are closely monitoring the $4,100-an-ounce level. A sustained move below that threshold could indicate further weakness in gold prices during the remainder of the year.
Other precious metals also remained under pressure. Spot silver fell 2.1% to $64.01 an ounce, platinum declined 3.4% to $1,667.92, and palladium slipped 1.5% to $1,204.24.
Media reports said base metals showed mixed performance. Copper remained relatively stable, supported by long-term demand linked to artificial intelligence infrastructure and data-centre investment.
However, expectations of tighter US monetary policy and volatility in technology markets may limit near-term gains, while supply constraints in zinc and aluminium continue to support their medium-term outlook.
Disclaimer: The views and recommendations expressed in this article are based on media reports and do not necessarily reflect those of VisionMP News. Readers should consult a qualified financial advisor before making any investment decisions.
