Gold and silver prices declined on Tuesday amid ongoing global economic and geopolitical developments, with weakness observed across both the Indian commodity market and the bullion market.
On the Multi Commodity Exchange (MCX), gold futures came under pressure during early trade. The August delivery contract opened lower compared with the previous trading session and recorded a notable decline during the session. Gold prices fell by around Rs 2,900 in early trade. Although prices recovered partially later, market pressure persisted. Investors continued to monitor global economic indicators and developments in international markets.
According to market experts, gold prices are often influenced by global inflation trends, the strength of the US dollar, central bank policies and geopolitical tensions.
Silver prices also registered a sharp decline. On the MCX, the July delivery silver contract opened significantly below its previous closing level and declined by nearly Rs 5,000 per kilogram during early trade. Silver prices are also influenced by industrial demand, global economic activity and investors’ risk appetite. Market analysts said investors have adopted a cautious approach amid global economic uncertainty.
In the domestic bullion market, prices of both gold and silver also moved lower. According to market data, 24-carat gold prices declined by approximately Rs 4,300, while prices of 22-carat and 18-carat gold also fell. Retail silver prices recorded a significant decline of around Rs 10,000 per kilogram.
Experts said gold and silver prices are not determined solely by domestic demand and supply conditions, as international developments also have a substantial impact. Rising tensions in West Asia, volatility in energy markets and concerns over global inflation have influenced investor strategies in recent days. Market expectations regarding interest rate policies of major central banks also play a significant role in determining precious metal prices.
Experts added that if interest rates remain elevated for an extended period, investors may reduce exposure to non-interest-bearing assets such as gold, which could put pressure on prices.
