Gold and silver prices experienced continued declines on Thursday, with silver showing a more significant drop compared to gold, influenced by global trends and profit-taking pressures on the metals.
Trading on the Multi Commodity Exchange (MCX), gold futures for the June 5, 2026 contract were at Rs 1,49,283 at 11:15 am, down by Rs 4,425 or 2.88%. Throughout the day, gold fluctuated within a range of Rs 1,49,250 to Rs 1,52,490.
Meanwhile, silver futures for the May 5, 2026 contract witnessed a sharper decline. Prices stood at Rs 2,28,891 at 11:14 am, marking a drop of Rs 14,610 or 6.00%. The day’s range for silver was between Rs 2,28,891 and Rs 2,42,800.
The decrease in domestic prices aligns with the downward movement in global markets. Spot gold fell by 2% to $4,664.39 per ounce, while US gold futures decreased by 2.5% to $4,691.10.
This decline follows a recent statement by US President Donald Trump regarding the Iran conflict, indicating continued aggressive actions against Iran, causing a rise in crude oil prices and dampening expectations of imminent interest rate cuts. Elevated oil prices and a stable interest rate outlook typically exert downward pressure on gold and silver prices.
Market data shows an increase in short positions for both gold and silver, indicating a bearish sentiment in the near future. The combination of decreasing prices and rising open interest suggests that traders anticipate further declines.
Silver’s more pronounced drop compared to gold underscores its higher volatility, as silver is not only considered a safe-haven asset but is also influenced by industrial demand. This makes silver more susceptible to shifts in global economic prospects and market sentiment, leading to larger price fluctuations.
CEO of Enrich Money, Ponmudi R, highlighted that MCX gold is displaying signs of weakness at higher levels, with a cautious outlook due to potential downside risks.
In the upcoming period, both gold and silver are expected to exhibit volatility, with global cues, oil prices, and developments in the Iran situation being crucial factors influencing their movements. While gold may benefit from its safe-haven status, silver could continue to experience more pronounced price swings in either direction.