Gold falls below $4,340 an ounce; silver sheds nearly 2.5%

Gold and silver prices declined in international markets on Monday (June 8), extending last week's sharp losses as investors reassessed interest-rate expectations following robust US economic data and a surge in crude oil prices.

COMEX gold futures were trading at $4,334.50 per ounce, down $30.80 or 0.71%, while COMEX silver fell 2.49% to $67.39 per ounce.

The weakness in precious metals comes after a steep correction last week, when gold lost nearly 5% and silver slid about 9%, as stronger-than-expected US labour market data reduced expectations of near-term Federal Reserve rate cuts and pushed Treasury yields higher.

Market sentiment remained cautious after a stronger US jobs report fuelled expectations that interest rates could stay elevated for longer. Higher interest rates typically diminish the appeal of non-yielding assets such as gold and silver.

Asian equities also came under pressure on Monday (June 8), led by a sharp sell-off in technology stocks, while the US dollar strengthened and Treasury yields remained elevated, creating additional headwinds for bullion.

At the same time, rising geopolitical

tensions in West Asia supported crude oil prices,

with Brent crude climbing above $95 a barrel after Israeli strikes on Beirut and subsequent missile attacks by Iran. Higher energy prices have shifted investor attention toward oil markets and raised concerns about persistent inflation.

Analysts said bullion is likely to remain sensitive to upcoming economic data and central bank decisions.

Investors are closely watching US inflation data due later this week, along with monetary policy decisions from the European Central Bank and the Bank of Canada. Trade and inflation readings from China, US consumer sentiment data and India's inflation figures are also expected to influence commodity markets.

Market experts noted that precious metals continue to witness corrective momentum after their recent rally.

According to analysts, a firm US dollar, elevated bond yields, exchange-traded fund outflows and improving risk appetite in some segments of the market have weighed on gold and silver prices. Signs that the Russia-Ukraine conflict could move towards a resolution have also reduced safe-haven demand for bullion.

Going forward, traders will monitor developments in West Asia, movements in crude oil prices and key macroeconomic indicators for cues on the direction of precious metals.

-With agencies inputs