On the Multi Commodity Exchange (MCX), April gold futures fell by ₹256, or 0.16%, to ₹1.55 lakh per 10 grams, with a turnover of 7,734 lots. Silver for May delivery declined by ₹213, or 0.08%, to ₹2.52 lakh per kilogram, trading 5,857 lots.
Analysts said gold and silver faced pressure as investors assessed multiple global factors, including fluctuating oil prices and geopolitical risks in West Asia.
“Escalating tensions involving the US, Israel, and Iran, particularly strikes on energy infrastructure and disruptions in the Strait of Hormuz, have amplified supply concerns,” said Renisha Chainani, Head of Research at Augmont.
“Rising energy costs are adding to inflationary pressures, which could delay expectations of monetary easing and create mixed signals for precious metals.”
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted that while the Federal Reserve is widely expected to maintain a pause, markets are closely watching for guidance on how oil market volatility could shape future rate decisions.
“Traders are refraining from fresh positions ahead of the Fed policy announcement, keeping both gold and silver subdued,” he said.
Globally, gold futures for April traded slightly higher at $5,013 per ounce on Comex, while silver futures for May dipped to $79.68 per ounce.
Despite short-term weakness, gold has gained around 16% in the global market so far this year.
Geopolitical uncertainties continue to weigh on investor sentiment. Iran confirmed the death of its national security chief Ali Larijani following previous Israeli claims, adding to tensions in the Persian Gulf region. Limited safe passage of vessels through the Strait of Hormuz has offered partial relief, but the market remains cautious.
Looking ahead, analysts said bullion prices will largely depend on forward guidance from central banks. Any dovish signals from the Fed or other major banks could trigger renewed buying interest, while persistent geopolitical or inflationary concerns may keep prices under pressure.
–With PTI inputs