Gold and silver prices slipped sharply in global and domestic markets as rising oil costs and higher inflation weighed on investor sentiment. On Comex, gold dropped by 67 dollars per ounce to 4660 dollars, while silver fell by 2.13 dollars to 83.67 dollars. The fall came as the dollar strengthened and inflation in the United States touched 3.8 percent in April, the highest since May 2023.
Oil prices added to the pressure, with Brent crude climbing to 108 dollars a barrel, nearly 50 percent higher than pre‑war levels. Concerns over Middle East tensions and risks to shipping routes in the Strait of Hormuz kept energy costs elevated. The stronger dollar made commodities more expensive globally, further reducing demand for precious metals.
In India, gold futures on MCX slipped by 647 rupees per ten grams to 1,53,016 rupees. Silver futures dropped by 5,185 rupees per kilogram to 2,73,126 rupees, though they remain higher by more than 34,000 rupees over the past five sessions. Silver also touched its highest level since March 11 in Monday’s trade.
Analysts say investors are cautious as the Federal Reserve may raise interest rates by 25 basis points later this year. Rising inflation, strong labour market data, and geopolitical tensions are expected to keep gold and silver under pressure in the near term.
