Gold, silver futures crumble as inflation, war risks roil markets

Improving global demand, easing tariff pressures and new trade agreements strengthen outlook for manufacturers and exporters

Gold and silver prices extended their losing streak for a fifth consecutive session on Thursday as investors shifted towards the US dollar amid persistent geopolitical tensions in West Asia, rising energy prices and growing concerns that global interest rates may remain elevated for longer.

 On the MCX, gold futures for August delivery declined by ₹277, or 0.19%, to ₹1,47,740 per 10 grams. The fall mirrored weakness in international markets, where Comex gold futures for August delivery dropped by $17.23, or 0.42%, to $4,116.07 per ounce. Market experts said precious metals remained under pressure as higher oil prices and stronger-than-expected US economic data revived concerns about inflation, reducing expectations of early interest rate cuts by the US Federal Reserve.

  According to Gaurav Garg, Research Analyst at Lemonn Markets Desk, gold prices slipped in domestic markets as escalating tensions between the US and Iran increased uncertainty across financial markets. Analysts noted that recent US military action against Iranian targets and Iran's retaliatory missile and drone attacks on American bases in Jordan, Kuwait and Bahrain have heightened geopolitical risks. While hopes of renewed peace talks have emerged after indications that US military operations may have concluded, the ongoing conflict continues to weigh on investor sentiment. Renisha Chainani of Augmont said concerns over the near-complete shutdown of the Strait of Hormuz have intensified fears of disruptions to global energy supplies. 

  Silver prices also remained under pressure. MCX silver futures for July delivery fell ₹1,705, or 0.72%, to ₹2,33,800 per kilogram. In global trade, Comex silver futures declined 1.48% to $63.78 per ounce.   Analysts said investors are now closely monitoring the US Producer Price Index data and comments from Fed officials for fresh signals on the future interest-rate path and the near-term direction of precious metal prices.