Dollar strengthens due to Trump’s warning to Iran: Gold and silver prices fall, crude oil prices rise
Delhi. In futures trade on Thursday, gold prices fell by Rs 6,004 to Rs 1.47 lakh per 10 grams. The decline was due to rising geopolitical tensions in West Asia, which strengthened the US dollar and weighed on investor sentiment.
The four-day rising trend in gold prices reversed in the Multi Commodity Exchange. The price of gold contract for delivery in the month of June fell by Rs 6,004 or 3.91 percent to Rs 1,47,704 per 10 grams.
Analysts said precious metals prices fell as the dollar strengthened again after President Donald Trump’s comments raised fears of an escalation of the conflict with Iran. In international markets, Comex gold futures for June contract also snapped a four-day rally, falling $194.70 or 4.05 per cent to $4,618.40 an ounce.
Silver price fell by Rs 14,301
In futures trade on Thursday, the price of silver fell by Rs 14,301 to Rs 2.29 lakh per kg. The dollar strengthened and precious metals came under pressure as geopolitical tensions increased after US President Donald Trump warned of intensifying military action against Iran.
On the Multi Commodity Exchange (MCX), the four-session bullish trend was broken and the price of silver fell by Rs 14,301 or 5.87 percent to Rs 2,29,200 per kg on Thursday.
Jigar Trivedi, senior research analyst at IndusInd Securities, said that silver prices fell heavily on Thursday due to US President Donald Trump not giving any clear information about the end of the ongoing conflict in West Asia and saying that America has almost achieved its strategic goals on Iran.
In the international market, the futures price of silver contract for May delivery fell by 6.45 percent to $ 71.16 an ounce. Market participants remain highly sensitive to the changing rhetoric around the conflict as investors reevaluate geopolitical risks.
Crude oil futures prices rise due to strong spot demand
Crude oil prices rose by Rs 689 to Rs 9,228 per barrel in futures trade on Thursday due to severe energy supply disruptions due to the West Asia conflict. On the Multi Commodity Exchange, the contract of crude oil for delivery in May rose by Rs 689 or 8.07 percent to Rs 9,228 per barrel. It was traded for 5,930 lots.
Market analysts said the rise in crude oil futures prices was due to traders increasing the size of their deals. Globally, West Texas Intermediate crude oil rose 8.23 percent to $ 108.53 per barrel, while Brent crude was trading 7.99 percent higher at $ 109.24 per barrel.
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