New Delhi, Jun 8 (PTI) Gold prices fell Rs 1,100 to Rs 1.58 lakh per 10 grams in the national capital on Monday, as investors dumped precious metals amid rising crude oil rates following fresh escalating tensions in West Asia.
According to local marketmen, the price of gold of 99.9 per cent purity declined by Rs 1,100 to Rs 1,58,800 per 10 grams (inclusive of all taxes) from Friday’s closing level of Rs 1,59,900 per 10 grams.
Silver also remained under intense selling pressure, plunging Rs 5,000 to Rs 2,55,700 per kg, extending losses for the fourth consecutive session. The white metal has shed Rs 15,300, or nearly 6 per cent, from Rs 2.71 lakh per kg recorded on June 2.
Analysts said the rebound in crude oil prices has altered the narrative for precious metals. Instead of benefiting from safe-haven demand amid tensions in West Asia, gold has come under pressure as investors worry that higher energy prices could fuel inflation and delay monetary policy easing.
“Gold continued to decline on Monday, reflecting overall weakness in the global market amid rising tensions between Israel and Iran, which have increased concerns about inflation and the outlook for interest rates,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
In the international markets, spot gold fell nearly 1 per cent to USD 4,291.79 per ounce, while silver declined 1.34 per cent to USD 66.93 per ounce.
Gold prices tumbled in overseas trade on strong US jobs data and escalating tensions in West Asia, Praveen Singh, Head of Commodities at Mirae Asset ShareKhan, said.
Meanwhile, Brent crude oil prices rose as much as 5 per cent to USD 98.07 per barrel but later pared some of early gains after Iran’s armed forces announced an end to their military operations against Israel.
According to reports, Iran has warned of stronger attacks if Tel Aviv resumes attacks on Lebanon.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said, “With the US May Consumer Price Index (CPI) release on June 10 pivotal, a hot reading could solidify the Federal Reserve’s interest rate hike bets, extend dollar strength, and further pressure precious metals.” As monetary policy tightens and the recent Iran-Israel escalation, the risk skew remains firmly to the downside, she added.
