Gold, Silver Prices Slip in India as Strong Dollar and Oil Surge Weigh on Bullion

Gold, Silver Prices Slip in India as Strong Dollar and Oil Surge Weigh on Bullion​

Precious metal prices in India edged lower on Thursday as global markets reacted to rising geopolitical tensions and a stronger US dollar. The combination limited fresh buying interest in gold despite the metal continuing to attract safe-haven demand.

Gold and Silver Prices on MCX​

On the Multi Commodity Exchange, gold futures declined 0.26% to ₹1.61 lakh per 10 grams for 24-carat purity.

Silver prices also moved lower, falling 0.63% to ₹2.67 lakh per kilogram.

Domestic price movements largely tracked global trends, where bullion faced pressure from a strengthening dollar and a sharp rise in crude oil prices.

Global Factors Influencing Gold Prices​

In international markets, gold prices also slipped during early Thursday trade.

Spot gold was down around 0.5% at approximately $5,151 per ounce. US gold futures for April delivery fell 0.4% to about $5,156 per ounce.

The US dollar strengthened by around 0.3%, making dollar-denominated commodities such as gold more expensive for buyers using other currencies. This reduced fresh demand in global markets.

At the same time, crude oil prices surged amid escalating tensions involving Iran and disruptions in the Strait of Hormuz, one of the world's most critical routes for energy shipments.

Iran has warned that oil prices could potentially rise toward $200 per barrel. Meanwhile, the International Energy Agency has called for a significant release of strategic reserves to address what it described as one of the largest oil supply shocks since the 1970s.

The spike in crude prices has raised concerns about renewed global inflation, which has lowered expectations for near-term interest rate cuts.

Why Gold Is Consolidating​

Market participants say bullion prices are currently caught between competing forces.

On one side, geopolitical uncertainty typically boosts demand for safe-haven assets such as gold. On the other, macroeconomic factors including a stronger US dollar and evolving interest rate expectations are limiting gains.

Aksha Kamboj, Vice President of the India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures, said gold prices are largely steady compared with the previous session as investors remain cautious about their market stance.

According to her, markets are balancing risk sentiment with policy expectations, which is leading to price consolidation around current levels.

Silver Sees Mild Correction​

Silver prices recorded a slightly sharper pullback following strong gains in previous sessions.

Market participants attribute the decline largely to profit booking after the recent rally.

Despite the short-term correction, silver continues to attract investor interest because of its dual role as both a precious metal and an industrial commodity. This dual demand often results in higher volatility compared with gold.

Jewellery Market Demand Trends​

Industry participants say consumer trends are also shaping demand dynamics in the jewellery segment.

Dishi Somani, founder of Dishis Designer Jewellery, said fluctuations in gold and silver prices are influenced by shifts in consumer sentiment and broader global economic developments.

She noted that gold continues to see strong demand as an investment asset even at elevated price levels. At the same time, silver is gaining popularity among younger buyers due to its affordability and increasing presence in modern jewellery designs.

Key Triggers for Bullion Markets​

Going forward, market participants are closely watching several global developments that could influence bullion prices.

These include geopolitical developments in the Middle East, movements in crude oil prices, and upcoming US economic data such as the Personal Consumption Expenditures inflation index, which is widely tracked as an indicator of inflation trends.