Mumbai, May 20 : Gold and silver prices declined sharply on Wednesday, with both precious metals falling over 1 per cent amid rising concerns over higher US interest rates.

On the Multi Commodity Exchange (MCX), gold futures (June 5) declined as much as 0.7 per cent or Rs 1,121 to hit an intraday low of Rs 1,57,959 as of 11:17 am. The yellow metal was trading at Rs 1,58,369, down 0.45 per cent or Rs 711. It touched an intraday high of Rs 1,60,378, rising 0.81 per cent or Rs 1,298, according to the exchange.

Meanwhile, silver futures (July 3) also witnessed selling pressure, slipping 1.21 per cent, or Rs 3,269, to Rs 2,66,850, its intraday low so far. The white metal was trading at Rs 2,68,970, down 0.43 per cent or Rs 1,149. It recorded an intraday high of Rs 2,69,605, lower by 0.19 per cent or Rs 514.

Earlier in the day, gold and silver opened on the MCX at Rs 1,58,974 and Rs 2,67,230, respectively.

In the international market as well, precious metals were trading lower. COMEX gold declined 0.49 per cent to $4,462 per ounce, while COMEX silver slipped 0.17 per cent to $73.868 per ounce.

According to commodity market experts, gold prices remained under pressure as investors assessed rising inflation risks and the possibility of higher US interest rates.

They noted that geopolitical tensions also continued to weigh on sentiment after US President Donald Trump warned that Washington could resume strikes on Iran within â??two or three daysâ?? if Tehran failed to accept Washingtonâ??s peace terms.

The ongoing conflict has disrupted shipping through the Strait of Hormuz, pushing crude oil prices higher and intensifying global inflationary pressures.

Analysts added that rising inflation concerns have reduced expectations of US Federal Reserve rate cuts while increasing speculation around possible rate hikes later this year.

For silver, experts said the metal has additionally erased recent gains that were supported by optimism around AI-linked stocks and rising demand from data-centre infrastructure expansion.

Meanwhile, domestic stock markets opened lower on Wednesday, with benchmark indices Sensex and Nifty trading in negative territory during early trade.

/IANS