Gold And Silver Prices Slip Slightly As Strong Dollar Weighs On Bullion Marke
Gold and silver prices witnessed a mild decline in India’s retail market on Friday, 15 May, as global economic factors and a stronger US dollar continued to put pressure on bullion rates.
The price of 24K and 22K gold dipped marginally across major Indian cities including Delhi, Mumbai, and Chennai, while silver prices also moved lower in the domestic market. Traders said the fall comes amid weakness in international gold prices, which touched an over one-week low.
On the Multi Commodity Exchange (MCX), gold June futures were trading nearly 0.79% lower at ₹1,61,370 per 10 grams during the morning session. Silver July futures also dropped sharply by around 2.97% to ₹2,83,100 per kilogram.
Market experts believe the strengthening US dollar is one of the key reasons behind the decline in precious metal prices. The dollar index climbed to 99.10 after global crude oil prices surged, with Brent crude rising over 1% and crossing the $107-per-barrel mark.
Higher oil prices and a stronger dollar often reduce investor interest in gold and silver, as precious metals become more expensive for buyers using other currencies.
Global geopolitical developments also remained in focus. A high-level summit between former US President Donald Trump and Chinese President Xi Jinping in Beijing drew attention from investors worldwide. Discussions during the meeting reportedly covered trade tensions, artificial intelligence, tariffs, Taiwan, Iran, and rare earth supplies.
According to reports, Xi Jinping also referred to the “Thucydides Trap,” a theory suggesting that rising tensions between emerging and dominant global powers can often lead to conflict. Analysts believe such geopolitical uncertainty continues to influence investor sentiment in global commodity markets, including gold and silver.
Despite the latest dip, bullion traders say many investors still view gold as a safe-haven asset during periods of economic uncertainty and geopolitical tensions.
News source: Information for this article was gathered from a variety of reliable news outlets.
