Daijiworld Media Network - New Delhi
New Delhi, May 11: Precious metals witnessed mixed trading on Monday as global uncertainty, a stronger US dollar, and rising geopolitical tensions kept investors cautious. While gold prices slipped into the red, silver managed to stay in positive territory during early trade.
On the Multi Commodity Exchange of India, June gold futures opened slightly lower at Rs 1,52,487 per 10 grams, down Rs 43 from the previous close. Selling pressure intensified through the session, pushing prices down by as much as Rs 638, or 0.41 percent, to an intraday low of Rs 1,51,892 before recovering partially later. The day’s high touched Rs 1,54,434.
In contrast, silver futures for July 3 saw strong early momentum. Prices rose over 1 percent, gaining nearly Rs 3,000 to hit an intraday high of Rs 2,64,922 per kg. At the time of reporting, silver was trading at Rs 2,62,552, up Rs 630 or 0.24 percent, after fluctuating between Rs 2,61,800 and higher levels during the session.
Analysts attributed the volatility in gold to multiple global triggers, including a firm US dollar and renewed pressure on safe-haven demand after remarks by US President Donald Trump, who reportedly rejected Iran’s latest response to a peace proposal linked to ongoing West Asia tensions.
International bullion markets also reflected similar sentiment. COMEX gold traded over 1 percent lower at around $4,678 per ounce, while silver remained relatively stable with marginal gains.
Market experts noted that rising crude oil prices and uncertainty surrounding the Strait of Hormuz are adding pressure on India’s import bill and foreign exchange reserves. This, in turn, is influencing domestic commodity sentiment.
The weakness in the Indian rupee further added to market stress, with the currency falling sharply by 139 paise to 94.90 against the US dollar in early trade.
Separately, government messaging around reducing non-essential gold consumption has also drawn attention. Prime Minister Narendra Modi recently urged citizens to limit discretionary gold purchases for a year, citing external economic pressures and rising import costs linked to global energy volatility.
Experts say the combined impact of geopolitical uncertainty, currency weakness, and oil price volatility is likely to keep precious metal markets volatile in the near term, with traders closely watching developments in West Asia and global central bank signals.