West Asia Tensions, Higher Yields Send Gold, Silver Prices Volatile
Gold and silver prices were volatile on Monday due to rising geopolitical tensions in West Asia and higher US bond yields.
On the Multi Commodity Exchange (MCX), gold futures for June 5 traded at Rs 1,58,697 per 10 grams, up Rs 150 or 0.09 percent from the previous day's close.
Silver futures for July 3 were trading at Rs 2,71,627 per kg, down Rs 259 or 0.10 percent from the previous day's close.
Analysts said that precious metals remained under pressure due to a stronger US dollar and rising US Treasury yields after hotter-than-expected US inflation data reduced expectations of interest rate cuts by the US Federal Reserve this year.
Rising inflationary concerns linked to the Middle East energy shock have also strengthened expectations of tighter global monetary policy, weighing on non-yielding assets such as gold and silver.