New Delhi, May 15 (IANS): Gold and silver prices fell sharply in domestic trade on Friday, with both precious metals declining by up to 4 per cent amid a stronger dollar index and rising crude oil prices. On the Multi Commodity Exchange, gold futures for June 5 dropped as much as 1.52 per cent or Rs 2,478 to touch an intraday low of Rs 1,59,500, while silver futures for July 3 came under heavier pressure, plunging 4.12 per cent or Rs 12,000 to Rs 2,79,102. At last count, gold was trading at Rs 1,59,792, down 1.34 per cent, while silver was trading at Rs 2,80,091, down 3.78 per cent from the previous close. The weakness was equally visible in international markets, with COMEX gold trading 1.54 per cent lower at $4,615 per ounce and COMEX silver declining 4.47 per cent to $81.49 per ounce.
Commodity market experts attributed the pressure on gold prices to rising US inflation, which has strengthened expectations that the US Federal Reserve may keep interest rates elevated for longer, while persistent geopolitical tensions in West Asia and disruptions to energy shipments through the Strait of Hormuz have fuelled inflationary concerns and further supported the US dollar, weighing on precious metals. Silver prices extended losses amid broader weakness in the metals complex, though the metal continued to draw support from expectations of strong industrial demand from sectors such as electronics and solar energy. Meanwhile, crude oil prices moved in the opposite direction, with international benchmark Brent crude gaining 1.57 per cent to $107.38 per barrel and US West Texas Intermediate crude advancing 1.72 per cent to $102.92 per barrel, reflecting the ongoing supply concerns linked to the West Asia crisis.