Gold prices decreased by Rs 150 to Rs 1,50,650 per 10 grams in the national capital on Monday, while silver fell by Rs 5,000. This decline was influenced by a sluggish global trend and a strong US dollar, leading traders to reduce their positions in precious metals. The precious metal of 99.9 per cent purity had concluded at Rs 1,50,800 per 10 grams in the prior session. Silver ended its four-day rally, dropping Rs 5,000 to Rs 2,40,000 per kilogram (inclusive of all taxes) from Friday’s closing level of Rs 2,45,000 per kg, as reported.

Traders indicated that the market continued to exhibit range-bound behaviour as investors weighed the persistent geopolitical risks in West Asia against a strengthening dollar and the anticipated developments regarding the US Federal Reserve’s monetary policy. “Gold prices experienced a slight decline in the domestic markets on Monday, as investors navigated the complex landscape of Washington-Tehran relations while awaiting key inflation data from the US,” said Gaurav Garg.

In the international markets, spot gold and silver experienced a slight decline, settling at $4,160.60 and $62.24 per ounce, respectively. “The yellow metal has slipped in the overseas trade on a firmer dollar as traders continue to discount an interest rate hike this year by the US Federal Reserve,” Praveen Singh said. He stated that investors will closely monitor the US ISM Services (June) figures and other macroeconomic indicators for new insights regarding the Federal Reserve’s monetary policy decisions.

On the outlook, Singh observed that the precious metal is anticipated to sustain a favourable bias due to optimism surrounding easing inflation and weak US employment figures. However, expectations that the Fed could maintain elevated interest rates for an extended period are likely to constrain any significant upward movement in prices, he added.