New Delhi: Gold prices declined by Rs 500 to Rs 1,55,400 per 10 grams in the national capital on Monday, pressured by a sell-off in global markets amid a sharp rise in crude oil prices and a stronger US dollar.

Gold of 99.9 per cent purity had ended at Rs 1,55,900 per 10 grams on Friday.

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Silver, however, bucked the trend and remained unchanged at Rs 2,34,600 per kilogram, inclusive of all taxes, according to local traders.

In international markets, spot gold fell USD 57.22, or 1.3 per cent, to USD 4,291.71 per ounce, while silver declined nearly 3 per cent to USD 62.82.

Gold slipped back towards USD 4,300 an ounce and silver eased to USD 64, marking their third straight weekly decline as investors factored in a probable Federal Reserve rate hike, said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex.

Higher crude oil prices have intensified inflation concerns, putting additional pressure on demand for gold and silver, he said.

Crude oil prices climbed to USD 103 a barrel, a fresh four-month high, after Saudi Arabia shut its East-West pipeline following drone attacks, reversing the losses recorded on Friday, Siddhant added.

The surge in oil prices has also complicated the outlook for interest rates. Australia and New Zealand Banking Group (ANZ) is now forecasting three 25-basis-point Federal Reserve rate increases by March 2027.

ANZ said geopolitical developments in West Asia and elevated energy costs could fuel inflation. At the same time, it noted that continued geopolitical uncertainty could boost gold's appeal as a safe-haven asset.

The bank retained its 12-month gold price target at USD 5,400 an ounce, citing recovering gold-backed ETF holdings and speculative positions, institutional demand in China and increasing investor participation in India as factors supporting investment demand for the precious metal.