New Delhi, May 28 (IANS) Gold and silver traded lower in international markets on Thursday as a stronger US dollar and renewed geopolitical tensions following fresh US military action against Iran weighed on sentiment and heightened concerns that inflation could remain elevated for longer.

Spot gold slipped nearly 2 per cent to $4,368.99 per ounce, while COMEX gold was trading 1.80 per cent lower to $4,367.90 per ounce.

On the other hand, silver prices also came under pressure, with spot silver declining more than 3 per cent to $71.94 per ounce. Similarly, COMEX silver traded 3.56 per cent lower at $72.22 per ounce.

On the domestic front, the Multi Commodity Exchange (MCX) remained closed on Thursday on account of Eid al-Adha.

Commodity market experts said gold remained under pressure as uncertainty surrounding ongoing US-Iran negotiations continued to dominate investor sentiment.

The yellow metal traded near the $4,450-per-ounce level after declining for two consecutive sessions, with key disagreements between Washington and Tehran remaining unresolved, according to market experts.

Major sticking points include Iran’s demand to retain control over the Strait of Hormuz and preserve its nuclear programme, while US President Donald Trump has reiterated that Washington would not accept what he described as a bad deal and ruled out easing sanctions despite Tehran’s calls for financial relief.

“Rising energy prices are adding to inflation concerns globally, lowering expectations for near-term interest rate cuts from major central banks,” experts said.

They added that persistent geopolitical uncertainty, elevated oil prices and a stronger dollar are likely to keep precious metals volatile in the near term.

Higher-for-longer interest rate expectations have continued to weigh on bullion prices, with gold currently trading more than 15 per cent below levels seen when the conflict initially erupted.

Meanwhile, crude oil prices rose more than 3 per cent after Iran’s Revolutionary Guards reportedly said they had targeted a US airbase in response to Washington’s military action, further intensifying concerns over supply disruptions and inflation.

–IANS

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