New Delhi: Gold prices fell nearly 1 percent to Rs 1.50 lakh per 10 grams in futures trade on Monday, following weak global trends amid a strong US dollar and higher crude oil rates.
On the Multi Commodity Exchange (MCX), the yellow metal for June delivery fell by Rs 1,149, or 0.76 per cent, to Rs 1,50,203 per 10 grams in a business turnover of 9,510 lots.
Over the past week, gold had depreciated by Rs 1,347, or nearly 1 per cent, to close at Rs 1.51 lakh per 10 grams.
“Gold prices have remained largely capped with slight pressure seen due to lingering inflation concerns and higher interest rate expectations, although geopolitical tensions continue to provide negative support,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
In international markets, Comex gold futures for the June contract fell $58.7, or 1.26 percent, to $4,585.8 an ounce in New York.
“Gold prices traded lower, continuing last week’s slide, hovering near one-month lows as dollar strength and rising oil prices continued to weigh on sentiment,” said Manav Modi, Commodity Analyst, Motilal Oswal Financial Services Ltd.
Rising crude oil prices, fueled by ongoing US-Iran tensions and supply disruptions through the Strait of Hormuz, have raised concerns about energy-led inflation, prompting a wave of hawkish signals from major global central banks, he added.
The US Federal Reserve has kept interest rates unchanged but pointed to rising inflation risks, while Fed Chairman Jerome Powell warned of higher inflation risks; however, he also expressed optimism about resilient growth.
Meanwhile, the European Central Bank, Bank of England and Bank of Japan have also hinted at possible rate hikes, reinforcing the higher-for-longer narrative weighing on assets like gold.
On the geopolitical front, uncertainty continued as US President Donald Trump revised possible military action, even as Iran presented a revised peace proposal, offering some hope for de-escalation.
However, Trump expressed displeasure with the proposal, keeping markets on edge as Iran reasserted its control over the Strait of Hormuz, posing risks to global oil supplies.
Investors will closely monitor PMI data from major economies and US jobs indicators for further clues on the monetary policy cycle and the trajectory for bullion prices, MOFSL’s Modi said.
