New Delhi, May 28 (IANS): Gold and silver traded lower in international markets on Thursday as a stronger US dollar and renewed geopolitical tensions following fresh US military action against Iran weighed on sentiment and heightened concerns that inflation could remain elevated for longer. Spot gold slipped nearly 2 per cent to $4,368.99 per ounce, while COMEX gold traded 1.80 per cent lower at $4,367.90 per ounce, with the yellow metal declining for two consecutive sessions and trading near the $4,450-per-ounce level as key disagreements between Washington and Tehran remained unresolved. Silver also came under pressure, with spot silver declining more than 3 per cent to $71.94 per ounce and COMEX silver trading 3.56 per cent lower at $72.22 per ounce. On the domestic front, the Multi Commodity Exchange remained closed on Thursday on account of Eid al-Adha. Major sticking points in the US-Iran negotiations include Iran’s demand to retain control over the Strait of Hormuz and preserve its nuclear programme, while US President Donald Trump reiterated that Washington would not accept what he described as a bad deal and ruled out easing sanctions despite Tehran’s calls for financial relief.
Commodity market experts said gold remained under pressure as uncertainty surrounding ongoing US-Iran negotiations continued to dominate investor sentiment, with rising energy prices adding to inflation concerns globally and lowering expectations for near-term interest rate cuts from major central banks. Persistent geopolitical uncertainty, elevated oil prices and a stronger dollar are likely to keep precious metals volatile in the near term, experts added. Higher-for-longer interest rate expectations have continued to weigh on bullion prices, with gold currently trading more than 15 per cent below levels seen when the conflict initially erupted. Meanwhile, crude oil prices rose more than 3 per cent after Iran’s Revolutionary Guards reportedly said they had targeted a US airbase in response to Washington’s military action, further intensifying concerns over supply disruptions and inflation.