Gold prices experienced a decline on Monday, continuing a trend of recent weakness as indications of diminishing tensions between the US and Iran led to a reduction in safe-haven demand for these precious metals. On the Multi Commodity Exchange, gold futures for June 5 opened at Rs 1,51,150, reflecting a decrease of Rs 382 from the previous close of Rs 1,51,532. As of approximately 11.30 am, the price of the yellow metal stood at Rs 1,50,623, reflecting a decrease of Rs 729 or 0.48 percent. Throughout the session, gold reached a low of Rs 1,50,400 and a high of Rs 1,51,347.
Silver prices continued to face downward pressure. MCX July 3 contracts commenced with a marginal decline at Rs 2,50,699, in contrast to the prior closing figure of Rs 2,50,937. The metal declined to Rs 2,49,600, a decrease of Rs 1,337 or 0.53 per cent. During the intraday session, silver recorded a low of Rs 2,49,600 and peaked at Rs 2,51,231. The trend in global markets continued to exhibit weakness. COMEX gold experienced a decrease of 0.55 per cent, settling at $4,619 per ounce, whereas silver saw a decline of 0.48 per cent, priced at $76.065 per ounce.
Market analysts indicated that bullion continued its downward trajectory from the previous week, remaining close to one-month lows, as a robust US dollar and high crude oil prices exerted pressure on market sentiment. The alleviation of tensions between the US and Iran has correspondingly diminished the attractiveness of safe-haven assets. US President Donald Trump has unveiled plans to support vessels stranded in the Strait of Hormuz through ‘Project Freedom’, which is designed to guarantee safe passage. However, he cautioned that a robust reaction would ensue should Iran present any threat.
Meanwhile, crude oil prices exhibited a downward trend, with Brent crude decreasing by 0.61 per cent to $107.51 per barrel and WTI experiencing a decline of 2.77 per cent to $99.11 per barrel. Analysts anticipate that bullion will exhibit volatility in the short term, influenced by global indicators, currency fluctuations, and geopolitical events that will persist in shaping price dynamics.