Gold prices crashed by ₹6,200 in the latest trading session, with MCX Gold Futures for June delivery dropping nearly 2% to around ₹1,58,872 per 10 grams as traders rushed to book profits. The domestic gold market looked less like a safe haven and more like a roller coaster, with spot gold prices across the globe falling to nearly $4,557 per ounce as spooked investors reacted to a mix of rising crude oil prices, a firmer US Dollar, and higher bond yields. With inflation worries heating up again, a quick US rate cut looks less likely, and gold prices are feeling the impact of these macroeconomic factors. As per The Financial Express, international spot gold fell by more than 4% from its recent high of $4,773 per ounce, with the precious metal now trading near the $4,557 per ounce mark.
Silver prices declined by ₹100, with one kilogram of the precious metal trading at ₹2,73,601 across Delhi, Kolkata, and Mumbai. However, Chennai recorded a higher price of ₹3,14,900 per kilogram. According to GoodReturns data, this represents a significant decline from previous levels, with the ₹100 drop indicating market pressure on silver prices amid the broader precious metals selloff. As per The Financial Express, restless silver was trading near the $78 per ounce mark down over 12% from its recent highs of $89, with the white metal experiencing a sharp decline of 6% in afternoon trade.
The Indian government's decision to tighten import norms has significantly impacted precious metals markets. On May 13, the Indian government raised tariff duties on import of gold and silver to 15% from 6%, followed by a cap of 100 kg on duty-free gold imports for jewellery exporters announced on May 14. While the move came in to curb arbitrage trade and ease forex pressure, it added to headwinds for precious metals. As per The Financial Express, analysts noted that India's decision to raise import tariffs on gold and silver added a further demand headwind, threatening to curtail one of the market's most reliable physical-buying cushions. The stricter norms are weighing heavily on gold and silver future prices, which are experiencing a heavy sell-off in today's trade.
US gold futures for June delivery lost 1.3% to $4,625.70, while spot gold fell 0.6% to $4,619.49 per ounce by 0045 GMT, as reported by Reuters. Bullion was down 1.9% so far this week, with higher energy prices fueling inflation fears and prolonged higher interest rates. Spot silver fell 1.7% to $82.08 per ounce, while platinum lost 0.6% to $2,043.25 and palladium was down 0.1% at $1,435.36. Investors focused on a meeting between US President Donald Trump and Chinese President Xi Jinping, which influenced precious metal pricing globally, though the latest crash appears driven by domestic profit-booking and global macroeconomic factors including tighter import norms.
Oil prices have been trading at elevated levels for nearly 11-weeks as the chokepoint-Strait of Hormuz, which transits nearly 20% of the global energy flows, remains largely closed. Brent crude was priced at $109 per barrel while the US benchmark, West Texas Intermediate, was quoted near the $105 per barrel level. High fuel prices have deepened concerns over supply disruptions linked to the West Asia conflict. As per The Financial Express, analysts noted that the tightening supply backdrop has kept the geopolitical risk premium elevated, with the IEA warning that the oil market could remain severely undersupplied through October even if tensions ease in the coming months. US President Donald Trump concluded his China visit, describing talks with President Xi Jinping as 'incredible' and stating that both sides discussed Iran and the Strait of Hormuz, with Trump expressing that both countries feel similar about wanting Iran to not have nuclear weapons and wanting the Strait open.
