Gold and silver prices declined on Monday amid fading hopes of a near-term interest rate cut by the US Federal Reserve, while escalating tensions in West Asia kept investors cautious.
On the Multi Commodity Exchange (MCX), gold futures for the April 2 contract were trading at Rs 1,56,655 per 10 grams, down more than 1 per cent or Rs 1,811, touching an intra-day low around 10 am.
Meanwhile, silver futures for the May 5 contract plunged 1.95 per cent or Rs 5,068 to Rs 2,54,367 per kg on the exchange.
In the international market, precious metals also traded lower. Gold was down 0.66 per cent to about $5,028 per ounce, while silver declined 0.79 per cent to around $80.70 per ounce.
The outcome of the upcoming policy meeting is expected to play a key role in determining the near-term direction of gold prices, analysts said.
Adding to the pressure, crude oil prices have remained above $100 per barrel, strengthening the US dollar and weighing on gold prices.
Meanwhile, the Indian rupee also opened in the negative zone, depreciating 13 paise to 92.43 against the US dollar in early trade.
At the interbank foreign exchange market, the local unit opened at 92.44 and stayed close to its lowest-ever intraday level, trading at 92.43 against the greenback, down 13 paise from its previous close.
The US Dollar Index slipped nearly 0.20 per cent, but remained above the 100 mark, continuing to exert pressure on gold prices.
Geopolitical tensions also remain elevated, with no signs of easing in the Iran–Israel conflict.
In addition, equity markets also witnessed a decline, with the BSE Sensex opening 148 points or 0.19 per cent lower at 74,415, compared with the previous close.
The Nifty 50 began the session on a flat note at 23,116, rising 35 points or 0.15 per cent from Friday’s close, as investors tracked developments in the ongoing tensions involving Iran, Israel, and the United States.
