Mumbai, Aug 31: Gold and silver prices came under pressure on Monday as rising expectations of higher US interest rates outweighed support from renewed geopolitical tensions in the Middle East.
In India’s retail market, 24-carat gold fell 1.22 per cent to around ₹1,54,940 per 10 grams, while 999 silver declined 1.37 per cent to nearly ₹2,38,870 per kg in early trade.
Prices also weakened on the Multi Commodity Exchange (MCX), with gold down 1.14 per cent at around ₹1,54,496 per 10 grams and silver futures lower by about 1.28 per cent at ₹2,39,341 per kg.
The decline came as investors reassessed the outlook for US monetary policy following hawkish signals from Federal Reserve Chair Kevin Warsh. Expectations of higher interest rates have weighed on precious metals because gold and silver do not generate regular interest income. Recent reporting also shows that Fed expectations are likely to remain a key driver for bullion prices in September.
Geopolitical tensions between the US and Iran added another layer of uncertainty to financial markets. The latest escalation pushed oil prices higher and kept investors focused on the potential impact on inflation and global economic growth. Brent crude rose sharply on Monday following the latest developments.
Despite the geopolitical uncertainty, bullion prices failed to gain from safe-haven demand as concerns over interest rates and yields remained dominant.
Gold and silver exchange-traded funds also faced heavy selling pressure, with some funds falling by as much as 4 per cent, reflecting the broader weakness in precious-metal markets.
Internationally, gold remained volatile after a sharp decline in the previous session. Spot gold was trading around $4,455 an ounce, while silver remained near $66 an ounce.
With August coming to an end, investors are likely to closely monitor US economic data, Federal Reserve signals, movements in the dollar and developments in the Middle East. These factors could determine whether gold and silver regain momentum or remain under pressure in the coming weeks.