Top News

Gold and silver prices declined on Thursday as escalating tensions in the Middle East strengthened expectations that the US Federal Reserve could keep interest rates higher for longer, weighing on precious metals.

On the Multi Commodity Exchange (MCX), both gold and silver traded lower, tracking weakness in international markets. Investors remained cautious after renewed military action in the Middle East pushed crude oil prices higher, raising concerns that inflation could remain elevated and delay any easing in US monetary policy.

Spot gold slipped below $4,040 per ounce, while US gold futures also edged lower. Silver extended its losses, reflecting weaker sentiment across the precious metals market. Analysts said rising oil prices have revived inflation worries, increasing the likelihood that the Federal Reserve may keep interest rates elevated or even consider another rate hike later this year. Higher interest rates typically reduce the appeal of non-yielding assets such as gold and silver.

Despite the decline in futures prices, retail bullion rates in India remained elevated.

According to Goodreturns, 24-carat gold is pricedat ₹14,358 per gram, while 22-carat gold is retailing at ₹13,161 per gram on July 16.

Market participants will now closely monitor comments from Federal Reserve officials and further developments in the Middle East, as both are expected to influence the direction of gold and silver prices in the coming sessions.