Gold and silver prices continued to decline on Monday as investors awaited key US inflation data and Federal Reserve Chair Jerome Powell’s testimony, both of which are expected to influence the direction of precious metals.
On the Multi Commodity Exchange (MCX), gold August futures dropped Rs 1,563, or 1.09%, to Rs 1,41,915 per 10 grams.
During the day, the contract touched an intraday low of Rs 1,41,557.Silver September futures also weakened, falling Rs 5,114, or 2.30%, to Rs 2,17,550 per kg. The metal touched an intraday low of Rs 2,17,277.
Sharp Decline From Record Highs
Gold is now trading about Rs 62,460, or 30.6%, below its 52-week high of Rs 2,04,375 per 10 grams. Silver has seen an even steeper correction, falling Rs 2,36,686, or 52.1%, from its record high of Rs 4,54,236 per kg.
The decline has been driven by a stronger US dollar and rising Treasury yields, which have reduced the appeal of non-interest-bearing assets like gold and silver despite ongoing geopolitical tensions.
Market Awaits US Inflation Data
Commodity analyst Manoj Kumar Jain of Prithvi Finmart Commodity Research said bullion prices remain highly volatile due to geopolitical developments and fluctuations in the US dollar and bond yields.
He noted that investors are closely watching upcoming US inflation data and Jerome Powell’s testimony, which could determine the next move in gold and silver prices.
Should You Invest?
Jain believes long-term investors can use the current correction to gradually accumulate gold and silver. However, he advised short-term traders to wait until prices stabilise before taking fresh positions.
According to analysts, bullion prices will remain sensitive to geopolitical events, US economic data and expectations regarding future US interest rate decisions.