Silver falls for the third consecutive session as weak domestic demand weighs on prices; global precious metals also trade lower

Gold prices remained unchanged in the Delhi bullion market on July 15, while silver continued its downward trend for a third consecutive trading session amid subdued buying from jewellers and industrial consumers. The domestic precious metals market witnessed limited movement even as international gold and silver prices declined following renewed concerns over global inflation and interest rate expectations.

According to market participants, cautious sentiment among buyers kept trading activity within a narrow range, preventing any significant recovery in bullion prices.

Gold Price Remains Unchanged

Gold prices in the national capital closed flat during Wednesday's trading session.

The price of 24-carat gold remained steady at ₹1,46,300 per 10 grams, showing no change from the previous close. Dealers attributed the stable movement to balanced domestic demand and the absence of major triggers in the local market.

Although international bullion prices weakened, the impact on domestic gold prices remained limited due to currency movements and cautious buying activity.

Silver Falls for the Third Straight Day

Silver continued to underperform, extending its losing streak for the third consecutive session.

In the Delhi bullion market, silver prices declined by ₹100, settling at ₹2,26,000 per kilogram.

Bullion traders said that weaker purchases from jewellers and industrial users reduced buying momentum, resulting in a modest decline in prices. Demand from manufacturers also remained subdued, keeping pressure on silver despite relatively stable gold prices.

Gold and Silver Futures Trade Lower

Precious metal futures also witnessed mild weakness in domestic commodity markets.

During evening trading:

• Gold futures slipped around 0.05%.
• Silver futures declined approximately 0.35%.

Market analysts noted that traders remained cautious ahead of fresh global economic developments, limiting aggressive buying in both precious metals.

International Gold Prices Decline

Global bullion markets also traded in negative territory on Wednesday.

Spot gold fell by nearly 0.6%, trading at around $4,030.50 per ounce during international trading hours.

The decline came after gold had posted gains of more than 2% in the previous session following softer-than-expected U.S. inflation data. Investors later shifted focus toward monetary policy expectations, leading to profit booking in the precious metal.

Meanwhile, U.S. gold futures for August delivery were also lower, trading around 0.8% below the previous close at approximately $4,036.20 per ounce.

Silver Weakens in Global Markets

Silver mirrored the weakness seen in gold.

Spot silver dropped about 1.1%, trading near $57.96 per ounce in overseas markets.

The decline reflected cautious investor sentiment as traders assessed the impact of rising geopolitical tensions and the possibility of tighter monetary policy in the United States.

Inflation and Interest Rate Expectations Remain in Focus

Analysts believe that developments in global energy markets could continue to influence precious metal prices in the coming months.

Higher crude oil, petrol, and diesel prices may contribute to rising inflation, increasing the likelihood that the U.S. Federal Reserve could maintain a tighter interest rate stance.

Generally, higher interest rates reduce the appeal of non-interest-bearing assets such as gold because investors tend to shift toward interest-generating investments.

Market expectations currently indicate a significant possibility of another U.S. interest rate hike in the coming months, keeping pressure on global bullion prices.

Geopolitical Developments Continue to Influence Markets

Apart from monetary policy expectations, geopolitical tensions in the Middle East remain an important factor affecting commodity markets.

Although gold is traditionally viewed as a safe-haven asset during periods of uncertainty, changing expectations regarding inflation, central bank policies, and energy prices have created volatility in both gold and silver markets.

Analysts believe investors will continue monitoring international developments, crude oil prices, and central bank decisions before taking fresh positions in precious metals.

Outlook for Bullion Prices

While domestic gold prices remained stable on July 15, silver continued to face pressure due to weak local demand and softer international trends.

Market experts expect bullion prices to remain sensitive to upcoming economic data, global inflation indicators, interest rate decisions, and geopolitical developments. Investors are advised to monitor these factors closely before making fresh investment decisions in gold or silver.