Gold and silver prices fell on India’s Multi Commodity Exchange (MCX) on Thursday, reversing a two percent surge recorded the previous day.
The decline was driven by profit-taking in morning trading, as investors locked in gains following the recent rally.
The sell-off occurred despite rising crude oil prices, which have been buoyed by escalating tensions between the United States and Iran.
The mixed signals from energy markets and monetary policy expectations created a volatile environment for precious metals.
While higher oil prices typically fuel inflation concerns that support gold, the immediate market reaction favored cashing out.
Traders are now closely monitoring the upcoming policy decision by the US Federal Reserve, which is expected to play a pivotal role in determining the next direction for both commodities and currencies.