Bullion prices in domestic markets remained under strain last week. On the Multi Commodity Exchange, silver tumbled by Rs 8,850, marking a decline of 3.3 per cent, while gold fell by Rs 3,168, a drop of about 2 per cent.
According to Pranav Mer, Vice President, EBG – Commodity & Currency Research, JM Financial Services Ltd, gold slipped below its recent consolidation band on Friday and closed the week with a decline of nearly 2 per cent. The weakness was largely driven by the strengthening U.S. dollar and increasing expectations that global central banks could postpone interest rate cuts amid rising crude oil prices.
He further said that prices of the yellow metal declined even as riskier assets such as equities experienced a broad sell-off. This was because traders and investors may have chosen to lock in profits at higher levels or may have been compelled to sell due to specific requirements such as margin calls.
