Gold and silver prices continued their downward slide as global and domestic markets faced heavy selling pressure. A stronger US dollar and rising US Treasury yields have reduced the appeal of precious metals, overshadowing their traditional safe-haven demand.
On the international market, gold slipped 1.17% to $4,355.80 per ounce, while silver dropped 2.62% to $67.54 per ounce. In India, the fall was sharper. Gold futures on MCX expiring June 5 fell nearly 5% to ₹1,40,749 per 10 grams, while silver July contracts tumbled 6.2% to ₹2,18,578 per kg. Prices are now down almost 20% from January highs, entering bear-market territory.
Analysts point to multiple headwinds. Rising crude oil prices amid Middle East tensions are stoking inflation fears, which in turn push bond yields higher. A stronger dollar makes gold costlier for buyers using other currencies, further dampening demand. While geopolitical risks usually support bullion, this time macroeconomic factors are proving dominant.
Experts caution that volatility will persist in the near term. Traders will closely watch oil prices, US yields, and developments in the Middle East. However, long-term fundamentals remain intact, with central banks continuing to buy gold and investors still viewing it as a hedge against inflation and currency risks.
Precious metals may stay under pressure for now, but their safe-haven appeal is unlikely to fade completely.