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New Delhi: Gold prices fell Rs 614, or 0.39%, to Rs 1,58,466 per 10 grams in futures trade on Wednesday, as weak global cues and a decline in spot demand weighed on the precious metal. On the Multi Commodity Exchange, gold contracts for June delivery traded lower at Rs 1,58,466 per 10 grams across 1,191 lots. Analysts attributed the fall to weak global sentiment, with gold futures declining 0.17% to $4,475.04 per ounce in New York.

Gold prices have been on a volatile ride in recent months, driven largely by the ongoing West Asia conflict, a strengthening US dollar and elevated crude oil prices. While gold had surged sharply in the earlier weeks of the conflict as investors sought safe-haven assets, Wednesday’s dip suggests some profit-booking and demand softening at higher price levels.

Silver edges higher amid West Asia crisis

Silver bucked the trend on Wednesday, rising Rs 80, or 0.03%, to Rs 2,70,199 per kilogram in futures trade. On the Multi Commodity Exchange, silver contracts for July delivery traded higher across 2,076 lots, with analysts citing fresh positions built up by participants as the key driver of the rise. In overseas markets, Comex silver futures climbed 1.54% to $74.87 per ounce.

Why are gold and silver prices elevated

Both gold and silver have seen a sharp surge in prices since the outbreak of the West Asia conflict. Investor demand for safe-haven assets, concerns over global energy supply disruptions and a weakening rupee have all contributed to keeping precious metal prices at elevated levels. The Indian government recently hiked import duty on gold and silver to 15% from 6% to curb non-essential imports and ease pressure on India’s foreign exchange reserves, adding further complexity to the domestic pricing of both metals.