New Delhi, May 27 -- Amid uncertainty over a potential end to the three-month-long conflict in the Middle East, precious metals traded with modest losses in Wednesday's session. The latest escalation in the region has reinforced concerns that inflation could remain elevated, keeping interest rates higher for longer.

Remaining lower for the third straight session, Comex gold dropped another $81 per troy ounce to the day's low of $4,421, marking its lowest level since late March. The recent decline also extended its month-to-date losses to 4%. The yellow metal has closed the last two months in the red and has lost over 15% of its value since the beginning of the conflict.

Silver prices also remained under pressure, falling nearly $3 per o...