The world economy and the strengthening US dollar are influencing the bullion market in India. Silver, which had gone up in value for four consecutive days, has reversed direction and is down sharply. There has been a reduction in the demand for gold as well. Investors are paying attention to key economic figures in the US and developments in West Asia. Hence, they are booking profits in precious metals.

On Monday, the prices of both gold and silver declined in Delhi. The gold price is down by ₹150 to ₹1,50,650 per 10 grams. The gold price in the previous trading was ₹1,50,800 per 10 grams of 99.9% purity.

It was a tough day for silver as its four-day surge has come to an end, and its price is down by ₹5,000. Local dealers say that silver, which had closed at ₹2,45,000 per kg on Friday, is currently priced at ₹2,40,000 per kg (inclusive of all taxes). The international market is also experiencing a slowdown. Spot gold is trading at $4,160.60 per ounce, while spot silver is trading at $62.24 per ounce.

The decline was mainly due to the strong US dollar and weak global trends. When the dollar strengthens in the international market, gold becomes expensive for investors with other currencies and this reduces the demand for gold. Also, the ongoing geopolitical tensions between Washington and Tehran (US-Iran) in West Asia and uncertainty over the US Federal Reserve’s monetary policy have made investors cautious. In the middle of this confusion, traders are reducing their positions.

Market analysts believe that investors are currently in a "wait and watch" mode. Gaurav Garg, research analyst at Lemon Markets Desk, says, "Gold prices declined slightly in the domestic market on Monday. Investors are closely monitoring the complex situation between Washington and Tehran. They are also awaiting important inflation data from the US."

Meanwhile, according to Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, "The yellow metal (gold) has slipped due to a strong dollar in foreign trade. Traders are anticipating that the US Federal Reserve may raise interest rates this year, and they are trading with this in mind."

Regarding the future outlook, investors will now be closely monitoring US ISM Services data and other macroeconomic indicators. These will provide clear indications of the Fed Reserve's next move.

Praveen Singh believes that the long-term outlook for gold remains positive due to expectations of softening inflation and weak US employment data. However, there is also a strong possibility in the market that the Federal Reserve may keep interest rates high for a longer period. If this happens, any sharp rise in prices could be halted.