Mumbai: Gold and silver prices dropped up to 1% on Monday after signs of easing tensions between the US and Iran, following remarks by Donald Trump, reducing demand for safe-haven assets.
On the Multi Commodity Exchange (MCX), gold contracts for June 5 opened at Rs 1,51,150, down Rs 382 or 0.25 per cent from the previous close of Rs 1,51,532.
At around 11.30 a.m., gold was trading at Rs 1,50,623, lower by Rs 729 or 0.48 per cent. The yellow metal touched an intraday low of Rs 1,50,400, a decline of 0.62 per cent or Rs 952, and an intraday high of Rs 1,51,347.
On the other hand, silver contracts for July 3 opened at Rs 2,50,699, down Rs 238 or 0.09 per cent compared to the previous close of Rs 2,50,937. The white metal was trading at Rs 2,49,600, down Rs 1,337 or 0.53 per cent.
So far in the session, silver futures hit a low of Rs 2,49,600, a decrease of 1.05 per cent or Rs 2,599, and a high of Rs 2,51,231.
Meanwhile, in the international market, both precious metals remained under pressure. COMEX gold was down 0.55 per cent at $4,619 per ounce, while silver declined 0.48 per cent to $76.065 per ounce.
A commodity market expert said gold prices extended last week’s decline, hovering near one-month lows, as a stronger dollar and elevated crude oil prices weighed on sentiment.
The expert further noted that while easing US-Iran tensions reduced some safe-haven demand, supply risks in the Strait of Hormuz continued to fuel inflation concerns, prompting a cautiously hawkish stance from major central banks, which also weighed on bullion.
US President Donald Trump said the United States would initiate efforts to help vessels stranded in the Strait of Hormuz, describing the move as a humanitarian gesture aimed at assisting neutral countries not involved in the ongoing US-Iran conflict.
According to Trump, Washington would launch ‘Project Freedom’ to guide the stranded ships and their crews safely through the route.
However, he warned that Iran would face a strong response if any threat emerged.
In addition, crude oil prices declined sharply.
Brent crude fell 0.61 per cent to $107.51 per barrel, while US West Texas Intermediate (WTI) dropped 2.77 per cent to $99.11 a barrel.
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–IANS
