Mumbai, May 20 (IANS): Gold and silver prices declined sharply on Wednesday, with both precious metals falling over 1 per cent amid rising concerns over higher US interest rates and inflation. On the Multi Commodity Exchange, gold futures for June 5 declined as much as 0.7 per cent or Rs 1,121 to hit an intraday low of Rs 1,57,959, while silver futures for July 3 slipped 1.21 per cent or Rs 3,269 to an intraday low of Rs 2,66,850. In international markets, COMEX gold declined 0.49 per cent to $4,462 per ounce while COMEX silver slipped 0.17 per cent to $73.868 per ounce. Commodity market experts attributed the pressure on gold prices to investors assessing rising inflation risks and the possibility of higher US interest rates, with rising inflation concerns having reduced expectations of US Federal Reserve rate cuts while increasing speculation around possible rate hikes later this year.
Geopolitical tensions also continued to weigh on sentiment after US President Donald Trump warned that Washington could resume strikes on Iran within “two or three days” if Tehran failed to accept Washington’s peace terms, with the ongoing conflict having disrupted shipping through the Strait of Hormuz, pushing crude oil prices higher and intensifying global inflationary pressures. For silver, experts noted that the metal had additionally erased recent gains that were supported by optimism around AI-linked stocks and rising demand from data-centre infrastructure expansion. Domestic stock markets also opened lower on Wednesday, with benchmark indices Sensex and Nifty trading in negative territory during early trade, reflecting the broader cautious sentiment pervading financial markets amid the confluence of geopolitical risks and macroeconomic uncertainty.