SRINAGAR: Gold and silver prices in India traded sharply lower on Monday, tracking weakness in international bullion markets amid a stronger US dollar and reduced expectations of Federal Reserve interest rate cuts this year. The decline came as a surge in crude oil prices intensified inflation concerns.
On the Multi Commodity Exchange (MCX), gold futures for June delivery opened lower by Rs 1,105, or 0.72 per cent, at Rs 1,51,547 per 10 grams compared to the previous close of Rs 1,52,652. Silver futures for May delivery also declined by Rs 4,912, or 2.01 per cent, opening at Rs 2,38,362 per kg against the previous close of Rs 2,43,274.
In global markets, spot gold dropped 1.1 per cent to $4,694.30 per ounce, marking its lowest level in nearly a week, while US gold futures for June delivery fell 1.4 per cent to $4,717.80 per ounce. Spot silver also slipped 1.9 per cent to $74.45 per ounce.
The US dollar index strengthened, making dollar-denominated bullion more expensive for holders of other currencies. Meanwhile, crude oil prices surged above $100 per barrel, raising inflation worries as geopolitical tensions escalated following stalled US-Iran ceasefire talks over the Strait of Hormuz.
Since the escalation of the US-Israel-Iran conflict on February 28, spot gold has fallen by more than 11 per cent.
Traders now expect limited chances of a US Federal Reserve rate cut this year due to persistent inflation risks driven by rising energy prices.
In other metals, platinum fell 1.3 per cent to $2,019.35 per ounce, while palladium gained 0.7 per cent to $1,531.50 per ounce.
