Gold and silver prices experienced volatility as international gold rates slipped on Monday, driven by inflation concerns, rising crude oil prices, and uncertainty surrounding US-Iran negotiations. Market analysts indicated that bullion prices would take cues from developments in US-Iran talks, crude oil market movements, and a series of key economic indicators this week. Remarks from US Federal Reserve officials are also expected to shape expectations around interest rates, influencing the near-term trajectory of precious metals.
Gold Rate Today: Why Are Gold Prices Not Rising Too Much?
Analysts pointed to a strong recovery in global equity markets, continued outflows from exchange-traded funds, and the absence of fresh positive catalysts as factors limiting gains in precious metals. Lingering inflation concerns have reinforced expectations that major central banks could maintain a tighter policy stance for longer, reducing the attractiveness of non-yielding assets such as gold.
Gold Rate Today: Gold Price Outlook
Pranav Mer, Vice President of Commodity & Currency Research at JM Financial Services, said the outlook for precious metals remains largely range-bound, with a possibility of further corrective movement in both gold and silver. Investors will closely track progress in negotiations between Washington and Tehran. With the ceasefire and talks reportedly extended by another 60 days, any breakthrough could further reduce safe-haven demand, potentially putting additional pressure on both gold and oil prices. Mer noted that bullion has remained under pressure in recent weeks as crude oil prices corrected sharply and investors reduced demand for traditional safe-haven assets amid signs of progress in US-Iran negotiations. Representatives from both countries have acknowledged a preliminary framework for a potential agreement, though it still requires approval from US President Donald Trump. Investors will begin the week by tracking manufacturing and services PMI data from major economies, while attention later in the week will shift to European GDP figures, US non-farm payrolls data, and employment-related indicators.
Gold Rate Today: Demand for Physical Gold Weakens
Demand for physical gold remained subdued in India during the past week as elevated prices and import duties discouraged buying activity. In China, premiums narrowed as consumers adopted a more cautious approach toward purchases. Meanwhile, data showed that speculative investors increased their bullish positions in gold, with net long holdings rising by 2,544 contracts to 96,931 during the week ended May 26.
Gold Rate Today: Crude Oil Prices Rise
Trump said on Friday that he would soon decide whether to approve a proposed extension of the ceasefire arrangement with Iran. However, major differences between the two sides reportedly remain unresolved. Geopolitical tensions persisted after Israeli Prime Minister Benjamin Netanyahu announced that military operations against the Iran-backed Hezbollah group would be expanded deeper into Lebanon, despite a ceasefire in place for over six weeks. Crude oil prices climbed over 2% in early trade, reviving concerns about inflation and its potential impact on monetary policy.
Gold Rate Today: International Gold Prices Slip
Gold prices edged lower on Monday as a firmer US dollar and a rise in crude oil prices reduced the appeal of the precious metal, while investors closely monitored developments surrounding a proposed extension of the Iran ceasefire agreement and awaited a decision from Trump. Spot gold slipped 0.2% to $4,527.36 per ounce as of 0156 GMT, retreating after touching a two-week high in the previous session. US gold futures declined 0.8% to $4,558.10 an ounce. The strengthening dollar added pressure on bullion by making gold more expensive for buyers using other currencies.
Despite the recent weakness, bullion prices have found some support from bargain buying at lower levels, ongoing investor interest amid renewed Russia-Ukraine tensions, and a relatively stable US dollar. On the MCX, gold futures ended last week at Rs 1.55 lakh per 10 grams, down Rs 3,104 or nearly 2%. Silver futures also weakened, declining Rs 4,848 or 1.8% to settle at Rs 2.66 lakh per kilogram. Market participants are expected to focus heavily on the health of the US economy and labour market in the coming days, with several major data releases likely to influence expectations around future Federal Reserve policy. On the domestic front, investors will also closely watch the Reserve Bank of India’s monetary policy decision scheduled for Friday.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
