Gold, Silver Prices Plummet Amid Failing US-Iran Talks

Gold and Silver Prices Plummet in India Amid Stronger Dollar and Inflation Worries

Gold and silver prices in India traded sharply lower on Monday, following weakness in international bullion prices. The decline was driven by a stronger dollar and dampened expectations of US Federal Reserve interest rate cuts this year, after a surge in crude oil prices fuelled inflation worries.

The MCX gold rate for June futures contracts opened lower by ₹1,105, or 0.72%, at ₹1,51,547 per 10 grams as against its previous close of ₹1,52,652 level. The MCX silver price for May futures contracts opened lower by ₹4,912, or 2.01%, at ₹2,38,362 per kilogram as compared to its previous close of ₹2,43,274 level.

Global Gold and Silver Prices Hit Near One-Week Low

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Gold prices in the international market fell to a near one-week low. Spot gold price declined 1.1% to $4,694.30 per ounce, its lowest level since April 7. US gold futures for June delivery fell 1.4% to $4,717.80 an ounce. Spot silver fell 1.9% to $74.45 per ounce.

The US dollar index strengthened, making greenback-priced bullion more expensive for other currency holders. Crude oil prices jumped above $100 a barrel, stoking inflation fears, as the US Navy prepared a blockade of the Strait of Hormuz that could restrict Iranian oil shipments after the US-Iran ceasefire talks failed to reach a deal to end the war.

Inflation Worries Weigh on Gold Prices

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Spot gold price has fallen over 11% since the US-Israel conflict with Iran began on February 28. Traders now see little chance of a US Fed rate cut this year amid inflation worries stoked by higher energy prices.