Market participants noted that gold came under pressure in a relatively thin trading environment, as investors continued to evaluate the implications of elevated energy prices and persistent uncertainty surrounding negotiations between the United States and Iran. Higher crude prices have strengthened expectations that interest rates may stay elevated for a longer period, with the possibility of additional tightening later in the year.
This outlook has supported the US dollar as well as Treasury yields, both of which moved higher during the session and weighed on precious metal prices.
Meanwhile, silver recorded a gain of Rs 6,800, or 2.8%, to settle at Rs 2,49,500 per kg (inclusive of all taxes), up from Rs 2,42,700 per kg in the previous session, as per the association’s data.
In the international market, however, spot silver declined 2.55% to $73.43 per ounce, while gold fell by $49.27, or 1.07%, to $4,565.68 per ounce.
Gold continued to trade on the weaker side globally, hovering around $4,560 per ounce, as rising crude oil prices—amid ongoing uncertainty in the Strait of Hormuz—kept sentiment cautious. Although oil prices had briefly eased after US President Donald Trump announced “Project Freedom” to facilitate the movement of vessels through the Strait, the lack of clarity around the initiative led to renewed buying in crude.
At the same time, comments from a senior Iranian lawmaker describing US involvement in the Strait as a breach of a fragile ceasefire added to geopolitical concerns, keeping investors wary and markets on edge.