Gold and silver showed volatility on Monday amid rising geopolitical tensions in West Asia, which typically support safe-haven demand, and a sharp rise in US Treasury yields.
On the Multi Commodity Exchange (MCX) gold futures (June 5) were trading at Rs 1,58,697 per 10 grams around 11 am, up Rs 150 or 0.09 per cent.
The yellow metal touched an intraday high of Rs 1,58,884, rising Rs 337 or 0.21 per cent, while the day’s low stood at Rs 1,57,547, down Rs 1,000 or 0.63 per cent.
On the other hand, silver futures (July 3) were trading at Rs 2,71,627 per kg, down Rs 259 or 0.10 per cent.
The white metal had earlier fallen as much as 2.55 per cent or Rs 6,937 to hit an intraday low of Rs 2,64,949. However, it touched an intraday high of Rs 2,74,145, up Rs 2,259 or 0.83 per cent during the session so far.
Analysts said precious metals remained under pressure globally due to a stronger US dollar and rising US Treasury yields after hotter-than-expected US inflation data reduced expectations of interest rate cuts by the US Federal Reserve this year.
Rising inflationary concerns linked to the Middle East energy shock have also strengthened expectations of tighter global monetary policy, weighing on non-yielding assets such as gold and silver, commodity market experts said.
They added that silver prices also came under pressure after UBS lowered its full-year silver investment demand forecast and projected a narrower global supply deficit.
Additionally, precious metals were trading lower in the global market. COMEX gold was down 0.39 per cent at $4,543 per ounce, while COMEX silver declined 2.28 per cent to $75.778 per ounce.
Moreover, global crude oil prices surged amid growing concerns over supply disruptions following an attack on a nuclear facility in the United Arab Emirates.
The international benchmark Brent crude climbed 2.37 per cent or $2.60 to $111.86 per barrel, while US West Texas Intermediate (WTI) crude gained 3.11 per cent or $3.28 to $108.70 per barrel.
(IANS)
