Gold and silver prices continued their downward trend, pressured by market uncertainty surrounding the US Federal Reserve's interest rate outlook and geopolitical tensions in West Asia. On the Multi Commodity Exchange, August gold futures fell sharply, reaching an intraday low before recovering slightly, but still closed lower by around 1 percent.
Silver futures for September followed suit, declining by over 1 percent during intraday trading. Despite brief rebounds, silver remained below key resistance levels, signaling cautious sentiment among traders. The metals’ losses reflect broader investor apprehension about tightening monetary policy in the United States, which typically weighs on precious metals by boosting the opportunity cost of holding non-yielding assets.
Market analysts cited expectations that the US Federal Reserve may implement up to three interest rate hikes this year, with the first likely occurring in September. Investors are also closely watching the upcoming US employment report for signals about the Fed’s policy direction. Such macroeconomic indicators heavily influence bullion prices as they affect real yields and inflation expectations.
Internationally, benchmark COMEX gold traded just below the $4,000 per ounce mark, while silver briefly gained over one percent but remained under pressure at around $59 an ounce. Meanwhile, crude oil benchmarks saw declines, with Brent crude dropping over 1 percent to around $73 per barrel and US West Texas Intermediate crude slipping below $70 per barrel. These energy price movements further reflect shifting global risk sentiment amid complex geopolitical and economic developments.