Gold and silver prices traded with high volatility on Monday as investors reacted to escalating tensions in West Asia, rising US Treasury yields and strong movements in global crude oil prices.
Market experts said geopolitical uncertainty continued to support safe-haven demand, while higher bond yields and inflation concerns limited gains in precious metals.
On the Multi Commodity Exchange (MCX), gold futures for June delivery traded around ₹1,58,697 per 10 grams during morning trade.
The yellow metal touched an intraday high of ₹1,58,884 before slipping to a low of ₹1,57,547, reflecting sharp fluctuations in investor sentiment.
Silver futures for July delivery also remained volatile. Prices traded near ₹2,71,627 per kilogram after falling sharply earlier in the session.
Silver touched an intraday low of ₹2,64,949 before recovering partially during trading hours.
Analysts said stronger US Treasury yields and a firmer US dollar continued to pressure global precious metal prices.
Recent US inflation data reduced expectations of interest rate cuts by the US Federal Reserve, increasing concerns that higher interest rates could remain in place for a longer period.
Commodity experts noted that rising inflationary pressures linked to the Middle East energy crisis also strengthened expectations of tighter global monetary policies.
Higher interest rates generally reduce the appeal of non-yielding assets such as gold and silver.
Silver prices weakened after UBS lowered its global investment demand forecast and projected a narrower supply deficit.
Global gold and silver prices also declined, while Brent crude crossed 111 dollars per barrel and US WTI crude rose above 108 dollars amid supply disruption fears in West Asia.
Analysts said geopolitical tensions, rising energy prices and market volatility could continue to influence precious metal prices.