The gold prices today witnessed a modest decline across India’s retail bullion market on Monday, June 29, with both 24K gold price and 22K gold price easing in major cities including Delhi, Mumbai and Kolkata. Silver prices also moved lower, reflecting weakness in the domestic precious metals market despite continuing geopolitical uncertainty overseas.
According to the latest market data, 24-karat gold was priced at ₹1,42,772 per 10 grams, down ₹408 or 0.28% from the previous session. Meanwhile, silver prices today stood at ₹2,18,648 per kilogram, registering a decline of ₹1,651, or 0.75%.
The decline in gold prices today comes even as investors continue monitoring developments in West Asia, global crude oil prices and international financial markets that often influence demand for safe-haven assets such as gold.
MCX gold and silver futures trade lower
In the futures market, the MCX gold price for August contracts traded 0.32% lower at ₹1,44,130 per 10 grams during morning trade.
Similarly, MCX silver futures slipped around 0.13% to ₹2,23,470 per kilogram, indicating cautious investor sentiment in the commodity market.
Commodity analysts note that domestic bullion prices are influenced by several factors, including international spot prices, movements in the U.S. dollar, import duties, inflation expectations and fluctuations in the Indian rupee. Daily price movements also reflect changing investor positions in futures markets.
Why are gold prices falling today?
The slight correction in gold prices today follows a period of heightened volatility driven by geopolitical tensions and shifting expectations regarding global economic conditions.
Market participants are closely watching the evolving situation between the United States and Iran, after reports suggested both countries had agreed to temporarily pause hostilities and allow commercial shipping through the Strait of Hormuz while continuing technical discussions.
Reduced immediate geopolitical risk generally limits demand for traditional safe-haven assets such as gold. However, uncertainty surrounding future negotiations continues to provide underlying support for precious metals.
At the same time, crude oil prices edged higher after renewed military activity over the weekend renewed concerns about energy supplies from the Middle East.
Crude oil prices remain in focus
Global energy markets also influenced investor sentiment on Monday.
West Texas Intermediate (WTI) crude futures rose approximately 1.3% to $70.17 per barrel, while Brent crude increased 0.78% to around $72.55 per barrel.
Energy analysts note that any disruption to shipping through the Strait of Hormuz could significantly affect global oil supplies, inflation expectations and central bank policy decisions. These factors often have an indirect impact on the direction of gold prices.
China-Japan trade tensions add to market uncertainty
Investor sentiment was also shaped by fresh geopolitical developments in Asia.
China expanded export restrictions on several Japanese defence research institutions and companies associated with strategic technologies. The move is expected to increase tensions between the two countries and has added another layer of uncertainty for global markets.
Market experts explain that geopolitical developments involving major economies often influence investor demand for defensive assets, including gold, although the immediate impact depends on broader economic conditions and currency movements.