Indian bullion markets showed a mixed trend on Wednesday amid ongoing volatility in global markets and rising geopolitical tensions. Gold prices recorded a marginal decline, while silver strengthened and attracted investor attention.
In business trade, fluctuations in global markets and escalating tensions in the Middle East weighed on domestic bullion sentiment. On April 29, gold prices on the Multi Commodity Exchange of India (MCX) remained under pressure and slipped below the ₹1.50 lakh per 10 grams level.
Market experts stated that the decline remains within a limited range, although price volatility continues. In contrast, silver prices gained momentum and were trading above ₹2.43 lakh per kilogram.
Decline in Gold Prices While Silver Gains Momentum
Gold prices softened slightly due to international cues. Profit booking by investors and fluctuations in the dollar index exerted pressure on the metal. In the domestic market, 24-carat gold was trading at approximately ₹1,49,950 per 10 grams. Experts noted that the decline is limited in scope, with gold continuing to retain its appeal as a safe-haven asset over the long term.
Silver, in contrast, outperformed during the session. Industrial demand and global support contributed to the upward movement in prices. Spot silver in international markets recorded a gain of around 1%, which reflected positively in domestic trading. Silver remains at elevated levels, with demand increasing among investors.
Impact of Global Markets
Global gold and silver prices continue to be influenced by multiple factors, primarily rising tensions in the Middle East and uncertainty in supply chains. Brent Crude Oil and WTI Crude Oil remain at elevated levels. This volatility in energy prices is increasing inflation risks, prompting investors to turn toward gold as a safer option.
Concerns remain centered on the Strait of Hormuz, a key route through which approximately 20% of the world’s oil and gas supply is transported. Rising tensions and political rhetoric between the United States and Iran have heightened uncertainty around the region. The International Energy Agency has described the situation as the largest supply shock in recent years, reinforcing concerns of rising global inflation.
