Dollar Strength and Middle East Tensions Drag Down Gold, Silver Prices

Gold and silver prices declined on Friday due to a stronger US dollar and rising geopolitical tensions in the Middle East. The dollar's strengthening made gold and silver more expensive for holders of other currencies, reducing demand.

The MCX gold futures contract opened at Rs 1,42,392 per 10 grams, down from the previous close of Rs 1,42,821. During intraday trade, gold dropped by as much as Rs 1,079 to touch an intraday low of Rs 1,41,742 per 10 grams.

The COMEX gold price slipped 0.48% to around $4,030 an ounce, while silver declined 0.41% to $57.80 an ounce. Market analysts attributed the decline in bullion prices to the strengthening US dollar index, which climbed above the 101 level amid heightened tensions involving the United States and Iran.