New Delhi: Gold prices retreated from a two-week high as investors booked profits amid rising crude oil prices, while silver declined sharply by nearly 4%, reflecting increased volatility in the precious metals market.
Market participants said the pullback in gold followed a strong rally, with traders adjusting their positions as oil prices moved closer to the $100 per barrel mark. The surge in energy prices has heightened concerns over inflation, prompting investors to reassess expectations for interest rates and global economic growth.
Silver witnessed steeper losses than gold, largely due to its dual role as both a precious and industrial metal. Weakness in industrial demand expectations and broader market risk-off sentiment contributed to the sharp decline in silver prices.
Analysts noted that geopolitical uncertainties, inflation concerns, and fluctuations in the US dollar continue to influence precious metal prices. While gold remains a preferred safe-haven asset during periods of market uncertainty, short-term price movements are often driven by profit-taking and changes in investor sentiment.
Higher oil prices also have broader implications for global inflation, transportation costs, and manufacturing expenses, factors that can affect commodity markets worldwide. Investors are expected to closely monitor central bank policies, economic data, and geopolitical developments for further direction.
Despite the recent correction, market experts believe gold’s long-term outlook remains supported by sustained central bank buying, economic uncertainty, and continued demand for safe-haven assets. Silver is also expected to remain sensitive to industrial activity, renewable energy investments, and global manufacturing trends