Gold prices decline as oil surges; strong US dollar weighs on bullion

According to fresh market updates, Gold began the week on the back foot, falling Rs 500 to Rs 1,55,400 per 10 gram in the national capital on Monday as a sell-off in global markets gathered pace amid a sharp climb in oil price marks and the US dollar.

The yellow metal of 99.9 per cent purity had closed at Rs 1,55,900 per 10 gram on Friday.

That stated, silver bucked the trend and held steady at Rs 2,34,600 per kilogram (inclusive of all taxes), according to local traders.

Globally, spot gold declined USD 57.22, or 1.3 per cent, to USD 4,291.71 per ounce and silver tumbled nearly 3 per cent to USD 62.82.

Gold eased back to around USD 4,300 per ounce and silver eased to USD 64, marking their third consecutive weekly loss as market participants priced in a probable Fed interest-rate gain, Akshat Siddhant, Lead Quant Market observer at investment platform Mudrex, stated.

Elevated crude prices have further noted to inflation worries, putting further pressure on demand for gold and silver, he stated.

Oil surged to USD 103 a barrel, a fresh four-month high, after Saudi Arabia shut its East-West pipeline following drone attacks, reversing the losses recorded on Friday, Siddhant further noted.

In the meantime, the oil spike is additionally complicating the interest-rate outlook, with the Australia and New Zealand Banking Group (ANZ) forecasting three 25-basis-point The US central bank rate increases by March 2027.

ANZ anticipates geopolitical developments in West Asia and elevated energy costs to add to inflation, but stated persistent geopolitical uncertainty could simultaneously strengthen gold's safe-haven appeal.

The bank retained its 12-month gold price target of USD 5,400 an ounce, pointing to recovering gold-backed ETF holdings and speculative positions, institutional demand in China and rising investor participation in India, as factors supporting investment demand for the metal. PTI HG SHM