Gold and silver prices decline amid US inflation and oil concerns

Gold and silver prices have experienced significant volatility and weekly declines across major markets in India and Pakistan. In India, gold prices fell approximately 2 percent on a weekly basis, driven by rising crude oil prices and increased expectations of a Federal Reserve interest rate hike following strong US inflation data. On the Multi Commodity Exchange (MCX), gold futures and silver futures saw slight declines, while the India Bullion and Jewellers Association (IBJA) reported lower rates for 24-carat gold.

In Pakistan, gold prices saw sharp decreases, with 24-karat gold dropping by Rs 5,600 per tola in some reports. Local markets in cities like Karachi and Lahore have been reacting to both domestic trends and international bullion fluctuations.

Market analysts attribute the downward pressure on precious metals to heightened inflation concerns fueled by a rally in crude oil prices, which has increased the likelihood of tighter US monetary policy. While some markets staged minor rebounds on Friday, the overall weekly trend for both gold and silver remains downward due to the shifting economic outlook and geopolitical tensions affecting energy costs.