Gold and Silver Prices Drop on MCX in Early Deals; Recovery in Progress

Gold and silver prices declined on the Multi-Commodity Exchange (MCX) on Monday morning as profit booking emerged amid a stronger dollar and firm crude oil prices. MCX gold June futures fell by ₹1,400, or nearly 1%, to ₹1,48,298 per 10 grams in early deals.

​Along with gold, silver prices also dropped. MCX silver May contracts declined by over ₹2,800, or more than 1%, to ₹2,29,651 per kilogram (kg).

Recovery Underway

However, as the day progressed, gold and silver recovered some lost ground. At 12:28 pm, gold June futures were trading at ₹150,194 per 10 grams, up by 0.34% on the MCX. On the other hand, silver May futures were trading at ₹2,32,749 per kg, up by 0.11%.

Dollar, Oil Keep Pressure On Precious Metals

Gold and silver came under pressure as the dollar index stayed above 100. A stronger dollar makes gold costlier for overseas buyers, which often limits demand. The rise in the dollar index is linked to higher crude oil prices. Oil remains elevated as the US-Iran conflict entered its sixth week.

Brent crude traded near USD 110 per barrel on Monday morning. Higher oil prices have raised concerns about inflation. At 12:34 pm, Brent crude was trading at USD 109.44 per barrel.

US Data Dampens Rate Cut Hopes

Recent economic data from the United States also added pressure on gold and silver. Note that US nonfarm payrolls rose by 1,78,000 jobs in March, the highest since December 2024. The unemployment rate stood at 4.3%. The stronger jobs data has reduced expectations of a rate cut by the US Federal Reserve in the near term.

Also Read - Brent Oil Reaches US$141, Its Highest Level Since The 2008 Financial Crisis

Prices Likely To Remain Volatile

Experts feel that gold and silver prices are likely to remain volatile given the existing geopolitical climate. According to them, short-term traders may consider booking profits during rallies, given the recent swings in prices.

Sources:

Livemint

CNBC TV 18