Comex gold futures fell sharply by $53 per troy ounce to $4,467 on June 3, while silver futures dropped nearly $2 to trade around $74 per ounce, according to livemint.com. The decline in precious metals prices followed a brief rally the previous day, with gold futures on MCX also dropping ₹1,226 per 10 grams to ₹1,58,120.
The retreat in gold and silver prices came as tensions in the Middle East intensified, pushing crude oil prices higher. This increase in oil prices reinforced expectations that the US Federal Reserve might maintain higher interest rates for an extended period. The firm US dollar further pressured precious metals, which are typically inversely related to the dollar's strength, contributing to the sell-off in gold and silver futures.
This movement in precious metals markets reflects broader economic concerns, including inflation fears and geopolitical risks. The Federal Reserve's stance on interest rates is a key factor influencing investor behavior in commodities. The drop in gold and silver prices contrasts with their usual role as safe-haven assets during periods of uncertainty, highlighting the complexity of current market dynamics.
The near-term gold futures contract on MCX closed at ₹1,58,120 per 10 grams on June 3, marking a significant decline from the previous session, as reported by livemint.com.