During the session, gold futures continued to trade in the negative zone, hovering just above ₹1.60 lakh per 10 grams, about 0.75% lower than the previous close, while silver fell around 1.2% to just above ₹2.65 lakh per kilogram.
Global markets set the toneThe decline in domestic prices followed a drop in international bullion markets.
Spot gold was trading around $5,071 per ounce, down about 1.7%, while silver on the COMEX fell sharply by more than 4% to around $80.9 per ounce during early trade.
Oil surge amid Middle East tensions
Market sentiment has been dominated by rising geopolitical tensions in the Middle East involving the United States, Israel, and Iran, which have triggered a sharp rally in crude oil prices.Benchmark Brent crude climbed toward $119 per barrel, while West Texas Intermediate also surged to similar levels.
The spike in oil prices has raised concerns over potential disruptions to energy supplies through the Strait of Hormuz, a crucial shipping lane for global crude flows.
Dollar strength weighs on bullion
Higher oil prices have also intensified fears of inflation, pushing US bond yields higher and strengthening the dollar — a combination that typically weighs on bullion.
A stronger dollar makes gold and silver more expensive for holders of other currencies, often dampening demand for precious metals.
Analysts say the recent moves reflect a broader market reaction to rising energy costs, inflation risks and heightened geopolitical uncertainty, which have triggered volatility across asset classes including equities, commodities and currencies.
–With agencies inputs
