Mumbai, May 20: Gold and silver prices fell sharply on Wednesday, with both precious metals declining over 1 per cent in futures trade amid concerns over higher US interest rates and weak global sentiment.
On the Multi Commodity Exchange (MCX), gold futures for June delivery dropped as much as 0.7 per cent during intraday trade before recovering slightly, while silver futures for July also came under pressure, falling over 1 per cent at one point.
Analysts said precious metals remained under selling pressure as investors weighed the possibility of prolonged high US interest rates, which tend to reduce demand for non-yielding assets like gold.
Global cues also remained weak, with COMEX gold and silver trading lower in international markets. Market sentiment was further influenced by rising geopolitical tensions and concerns over inflationary pressures linked to energy price volatility.
Experts added that uncertainty around US monetary policy continues to dominate market direction, with expectations of delayed rate cuts or potential rate hikes affecting investor appetite for bullion.
Silver prices also saw additional pressure after recent gains driven by optimism in industrial demand from AI-related infrastructure and data centre expansion.