• Source:JND
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Gold, Silver Rates Today: The precious metals prices--Silver and Gold--have suffered a massive decline in the domestic futures market amid expectations of an interest rate hike by the US Fed and uncertain global geo-political conditions. In intraday trade, MCX Silver plunged over Rs 16,000, and Gold fell over Rs 2,000.

MCX Gold, Silver Rates

On the Multi Commodity Exchange, silver for July delivery fell by Rs 16,352 (5.62 per cent) to Rs 2,74,750 per kg in a trade turnover of 7,908 lots. Silver prices also fell following a sharp decline in global markets due to rising inflation concerns in the US and renewed expectations of the Federal Reserve raising interest rates.

Analysts said a stronger dollar, rising US Treasury yields and broad-based weakness in the precious metals sector weighed on silver prices.

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In the global market, Comex silver futures for the July contract in New York fell $6.42 (7.52 per cent) to $78.90 per ounce.

MCX Gold Price Falls 2 Per Cent

On the Multi Commodity Exchange, the yellow metal for June delivery fell by Rs 2,880 (1.78 per cent) to Rs 1,59,098 per 10 grams, with a trade turnover of 7,714 lots.

A stronger US dollar, rising crude oil prices and diminishing expectations of an interest rate cut by the Federal Reserve weighed on investor sentiment.

The decline reflects weakness in the global market. In New York, Comex gold futures for the June contract fell $112.75 (2.41 per cent) to $4,572.55 per ounce.

What did the analyst say?

"Silver slipped below USD 82 per ounce in the overseas trade, extending declines for a second consecutive session as broad-based weakness across the metals segment deepened amid mounting US inflation concerns and renewed rate hike speculation," Renisha Chainani, Head - Research at Augmont, said.

Analysts said market participants also remained cautious amid elevated geopolitical concerns in West Asia and uncertainty surrounding the US-Iran negotiations.

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Higher crude oil prices and persistent inflation concerns have reduced expectations of near-term rate cuts by the US Federal Reserve, putting additional pressure on precious metals, they added.

"Gold prices extended losses for the fourth straight day in overseas trade, as rising oil prices, a stronger dollar and US Yields weighed on sentiment following reports of a vessel seizure and another ship sinking," Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd, said.

With Inputs From PTI


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