Gold and silver investors may need to brace for extended volatility, as market experts warn that precious metals are unlikely to replicate last year's strong gains and could remain under pressure in the near term. Sentiment in global bullion markets stays subdued, with participants factoring in the possibility of additional policy tightening by the US Federal Reserve at its upcoming meeting. Expectations surrounding future interest rates are likely to continue influencing the direction of precious metal prices.
Elevated crude oil prices remain a key concern for bullion markets. Experts say that as long as oil stays firm, worries over inflation and the prospect of a tighter interest-rate environment are likely to weigh on investor sentiment towards gold and silver.
Gold Rate Today: Singapore's Gold Move
In a sign of growing investor interest in the precious metal, DBS Group, Singapore's largest bank by assets, announced on Thursday that it will introduce tokenised physical gold offerings for retail investors. The move comes as Singapore seeks to strengthen its position as a global gold trading centre.
Gold Rate Today: Rate Hike Fears
Data released during the week showed that US producer prices rose more than anticipated in May, resulting in the strongest annual increase in three-and-a-half years. Higher energy costs linked to the conflict in the Middle East contributed significantly to the rise. According to CME Group's FedWatch Tool, traders are currently assigning a 60% probability to a US interest rate hike by December. Although gold is widely regarded as a hedge against inflation, higher interest rates generally reduce the appeal of the non-yield-bearing asset.
Silver Rate Today: Spot Silver Declines
Among other precious metals, spot silver declined 0.4% to $67.11 per ounce. Platinum gained 0.3% to $1,724.45, while palladium rose 1% to $1,281.75 per ounce.
Gold Rate Today: Gold Touched Lowest Level in 6 Months
The precious metal touched its lowest level in more than six months on Thursday before recovering to settle at $4,219.69. The rebound came after US President Donald Trump withdrew plans for military action against Iran and indicated that a peace agreement could be close. Trump said on Thursday that Washington and Tehran may be able to finalise a peace deal as early as this weekend, potentially leading to the reopening of the Strait of Hormuz for shipping traffic. However, Iran stated that no final decision had yet been taken on any agreement.
Gold Rate Today: Spot Gold Drops
Gold prices slipped on Friday and were heading towards a weekly decline as investors weighed persistent inflation pressures and the possibility of further interest rate increases by the US Federal Reserve. Spot gold was down 0.3% at $4,200.82 per ounce as of 0101 GMT and was on course to register a weekly loss of 2.8%. Meanwhile, US gold futures for August delivery advanced 2.6% to $4,222.10 per ounce.
Gold, Silver Rate Today Live Updates: Both gold and silver have slipped below important technical levels as rising crude oil prices and renewed inflation concerns have reduced expectations of interest rate cuts by the US Federal Reserve. Disruptions around the Strait of Hormuz have revived concerns over global inflation by driving oil prices higher. The US two-year Treasury yield—a key indicator of market expectations for Federal Reserve policy—has climbed to its highest level since February 2025, creating a difficult backdrop for gold and silver, which are often viewed as alternatives to the US dollar. Higher interest rates and a stronger dollar tend to diminish the appeal of non-interest-bearing assets such as gold and silver. Experts are of the view that the enthusiasm generated by last year's strong rally has begun to fade, leading investors to reassess their positions.
Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.
