Fall in gold and silver prices in the world market

Gold and silver prices fell in the international market despite oil prices rising due to tensions in the Middle East. Reuters reports that investors' concerns about a possible interest rate hike by the US central bank, the Federal Reserve, have put pressure on the precious metal.

According to the report, the price of spot gold decreased by 0.7 percent till 8:30 am Bangladesh time on Monday (June 29). This comes down to $4,061.35 per ounce. U.S. gold futures for August delivery also fell 0.5 percent to $4,076.40. With this, the market is on the path of monthly gold price decline for the fourth consecutive month, where the total decline is about 10.4 percent.

Tim Waterer, chief market analyst at KCM Trade, said oil prices were once again on the upswing after renewed military strikes between the United States and Iran at the end of the week. As a result, uncertainty about inflation and interest rates has increased.

Iran launched missile and drone attacks on US military bases in Kuwait and Bahrain on Sunday. Earlier, US President Donald Trump warned that Iran's leadership will be wiped out if the ceasefire agreement is not respected.

However, according to a report published on the same day, Tehran and Washington have agreed to end the recent conflict and resume talks on the Strait of Hormuz issue.

According to analysts, higher crude oil prices could raise inflation, pushing central banks to raise interest rates. And as interest rates rise, the attractiveness of gold as an interest-free asset diminishes.

Spot silver fell 1.1 percent to $58.51 an ounce alongside gold prices. But platinum rose 1 percent to $1,630.13 and palladium rose 0.8 percent to $1,218.92.