New Delhi, May 15 (IANS) Gold and silver prices traded sharply lower on Friday, with both precious metals declining in domestic trade by up to 4 per cent amid strength in the dollar index.

On the Multi Commodity Exchange (MCX), gold futures for June 5 fell as much as 1.52 per cent or Rs 2,478 to touch an intraday low of Rs 1,59,500 as of 10:45 am.

Meanwhile, silver futures for July 3 came under heavier pressure, plunging 4.12 per cent or Rs 12,000 to Rs 2,79,102.

At the last count, the yellow metal was trading at Rs 1,59,792, down 1.34 per cent or Rs 2,186. It touched an intraday high of Rs 1,60,992, which was 0.6 per cent or Rs 986 lower than the previous close.

On the other hand, the white metal was trading at Rs 2,80,091, down 3.78 per cent or Rs 11,011 from the previous close. It recorded an intraday high of Rs 2,83,219, marking a decline of 2.7 per cent.

Earlier in the session, gold and silver opened at Rs 1,60,790 and Rs 2,80,000 on the MCX, respectively.

Weakness in gold and silver prices was also visible in international markets. COMEX gold was trading 1.54 per cent lower at $4,615 per ounce, while COMEX silver declined 4.47 per cent to $81.49 per ounce.

According to commodity market experts, gold prices remained under pressure globally as rising US inflation strengthened expectations that the US Federal Reserve may keep interest rates elevated for longer.

They noted that persistent geopolitical tensions in West Asia and disruption in energy shipments through the Strait of Hormuz have fuelled inflationary concerns and supported the US dollar, weighing on precious metals.

Experts further said silver prices also extended losses amid broader weakness in the metals complex, although the metal continued to draw support from expectations of strong industrial demand from sectors such as electronics and solar energy.

Meanwhile, crude oil prices rose more than 1 per cent, with international benchmark Brent crude gaining 1.57 per cent to $107.38 per barrel. Similarly, US West Texas Intermediate (WTI) crude advanced 1.72 per cent to $102.92 per barrel.

–IANS

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