Mumbai: Gold and silver prices continued to witness strong fluctuations on Monday as investors across the world closely monitored global tensions, inflation worries and signals from the United States Federal Reserve on future interest rate decisions.
In India, bullion prices moved unevenly throughout the trading session, reflecting uncertainty in international markets. MCX gold futures for June delivery traded near Rs 1.58 lakh per 10 grams, while silver futures were around Rs 2.71 lakh per kilogram. Traders reported that silver prices showed sharper movements during the day compared to gold, with frequent gains and losses in the domestic market.
Retail prices of gold also changed slightly in major Indian cities including Delhi, Mumbai, Chennai and Kolkata. Jewellers said customer activity remained moderate as many buyers waited for more stability in prices before making purchases. Market observers noted that recent price swings have made consumers cautious, especially during the ongoing wedding and festive demand period.
Globally, gold prices faced pressure after oil prices moved higher due to rising tensions in the Middle East, particularly involving the United States and Iran. The increase in crude oil prices has raised concerns that inflation could remain high for a longer period. Analysts said this has strengthened expectations that the US Federal Reserve may delay interest rate cuts.
Higher interest rates usually reduce the attractiveness of gold because the metal does not provide regular returns like interest bearing investments. At the same time, geopolitical uncertainty continues to support demand for gold as a safe investment during difficult periods.
Silver prices also remained under pressure due to profit booking and concerns over industrial demand. Unlike gold, silver is widely used in industries such as electronics, solar energy and manufacturing. Experts explained that any slowdown in global industrial activity can affect silver prices more sharply.
Commodity analysts said the precious metals market is currently moving between support from global uncertainty and pressure from a stronger US dollar. A stronger dollar often makes gold and silver more expensive for buyers using other currencies, which can reduce demand in international markets.
Despite the short term volatility, many experts believe gold continues to maintain a strong long term outlook. Technical analysts said the current market movement appears to be a consolidation phase rather than a major decline. They added that investors still see gold as an important protection against inflation and economic uncertainty.
In India, domestic bullion trading has also been influenced by government policy decisions. Recent increases in import duties on precious metals and tighter rules related to gold imports have affected market sentiment. Industry representatives said these measures were introduced to manage imports and protect foreign exchange reserves.
Jewellery traders across several cities said customer enquiries remain active, but actual purchases have slowed due to constantly changing prices. Some buyers are choosing lighter jewellery or postponing purchases in the hope of lower prices in the coming weeks.
Financial experts advised investors to remain cautious as volatility may continue in the near future. Upcoming economic data from the United States, movements in the dollar index and changes in crude oil prices are expected to play an important role in determining the direction of gold and silver markets.
Analysts said investors should avoid making decisions based on short term market movements alone. While geopolitical tensions are supporting safe haven demand, inflation concerns and uncertainty over global interest rates are creating continuous pressure on precious metals.
Market participants now await fresh signals from central banks and global economic developments to understand whether gold and silver prices will stabilise or continue their volatile trend in the coming days.