Gold and silver prices traded lower on the Multi Commodity Exchange (MCX) on Thursday, May 21, amid profit booking, easing safe-haven demand, and cooling commodity sentiment after recent geopolitical-driven rallies.
MCX Gold June futures slipped below the key ₹1.6 lakh per 10 grams mark and were trading around ₹1,59,800 per 10 grams during the session.
Meanwhile, MCX Silver July futures declined sharply by ₹1,350 to ₹2,72,915 per kilogram.
The decline in precious metals came as global commodity markets turned volatile following fluctuations in crude oil prices and changing expectations around interest rates and geopolitical developments linked to the US-Iran situation.
Internationally, gold prices remained under pressure after recent gains, while silver also witnessed selling pressure following sharp rallies earlier this month. Investors continued to monitor inflation trends, US Treasury yields, and Federal Reserve policy expectations for further direction in bullion prices.
Silver, which had recently surged on strong industrial demand optimism and safe-haven buying, saw sharper correction compared to gold as traders booked profits at elevated levels.
Market participants are also closely watching the US Federal Reserve minutes and global bond market movements, as higher interest rate expectations typically reduce the appeal of non-yielding assets like gold and silver.
Despite the correction, bullion prices remain elevated on a broader basis due to continued geopolitical uncertainty, central bank buying, and concerns over global inflation trends.
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