Gold, Silver Witness Volatile Trade as West Asia Tensions and US Bond Yields Rise

Mumbai: Gold and silver prices remained highly volatile on Monday as escalating geopolitical tensions in West Asia boosted safe-haven demand, while rising US Treasury yields and a stronger dollar continued to pressure precious metals globally.

On the Multi Commodity Exchange (MCX), gold futures for June 5 delivery were trading at Rs 1,58,697 per 10 grams around 11 a.m., gaining Rs 150 or 0.09 percent.

During the session, gold touched an intraday high of Rs 1,58,884, rising 0.21 percent, while it also slipped to a low of Rs 1,57,547, marking a decline of 0.63 percent.

Silver futures for July 3 delivery were trading at Rs 2,71,627 per kilogram, down Rs 259 or 0.10 percent.

Earlier in the day, silver prices dropped sharply by 2.55 percent to touch an intraday low of Rs 2,64,949 per kg. However, the metal later recovered partially and climbed to a high of Rs 2,74,145 during trading.

Market analysts said that stronger US Treasury yields and higher-than-expected inflation data in the United States have reduced hopes of interest rate cuts by the US Federal Reserve this year, putting pressure on bullion prices.

Experts added that concerns over inflation linked to the ongoing West Asia crisis and rising energy prices have increased expectations of tighter global monetary policy, which negatively impacts non-yielding assets like gold and silver.

Silver prices also faced additional pressure after UBS lowered its outlook for global silver investment demand and projected a narrower supply deficit for the year.

In the international market, COMEX gold slipped 0.39 percent to $4,543 per ounce, while COMEX silver declined 2.28 percent to $75.778 per ounce.

Meanwhile, crude oil prices surged amid fears of supply disruptions following reports of an attack on a nuclear facility in the United Arab Emirates.

Global benchmark Brent crude rose 2.37 percent to $111.86 per barrel, while US West Texas Intermediate (WTI) crude climbed 3.11 percent to $108.70 per barrel.

With inputs from IANS