Dollar Strength and Middle East Tensions Weigh on Gold and Silver

Gold and silver prices declined on Friday due to a stronger US dollar and escalating tensions in the Middle East. Gold futures for August delivery opened at Rs 1,42,392 per 10 grams, down from its previous close of Rs 1,42,821.

During intraday trade, gold dropped by as much as Rs 1,079 to an intraday low of Rs 1,41,742 per 10 grams. The contract later recovered some losses and was trading at Rs 1,42,376, down Rs 445 from its previous close.

Silver futures for September delivery also started the day on a weaker note, opening at Rs 2,18,280 per kg, down Rs 1,095 from the previous close of Rs 2,19,375 per kg. The white metal declined nearly one percent during the day, falling to an intraday low of Rs 2,17,325 per kg.

Market analysts attributed the decline in bullion prices to the strengthening US dollar index, which climbed above the 101 level amid heightened geopolitical tensions involving the United States and Iran. A stronger dollar typically makes gold and silver more expensive for holders of other currencies, reducing demand.