Global Commodity Sell-Off Drives Down Silver and Gold

Silver and Gold Prices Plunge Amid Global Commodity Sell-Off​

New Delhi, March 19 – Precious metal markets witnessed a sharp decline on Thursday, with silver falling by Rs 17,800 to Rs 2.38 lakh per kilogram and gold dropping by Rs 7,000 to Rs 1.53 lakh per 10 grams in the national capital. The fall comes amid heavy selling in global commodity markets.

According to the All India Sarafa Association, silver slumped nearly 7 per cent to Rs 2,38,700 per kg (inclusive of all taxes) from Wednesday’s closing of Rs 2,56,500 per kg. This marks a steep decline of Rs 1,65,800 per kg, or 41 per cent, from its lifetime high of Rs 4,04,500 per kg recorded on January 29.

Gold of 99.9 per cent purity also dropped by Rs 7,000, or 4.37 per cent, to Rs 1,53,300 per 10 grams from Rs 1,60,300 per 10 grams. The yellow metal has fallen Rs 29,700, or 16.23 per cent, from its all-time high of Rs 1,83,000 per 10 grams on January 29.

Analysts attributed the sharp fall to rising inflation concerns, hawkish central bank policies—particularly by the US Federal Reserve and the Bank of Japan—and surging global crude prices.

Gaurav Garg, Research Analyst at Lemonn Markets Desk, said that gold and silver prices resumed their downward trend amid increasing global inflation worries. He added that geopolitical tensions from the ongoing US-Iran conflict, which threaten oil supply, are intensifying inflation concerns.

Dilip Parmar, Senior Research Analyst at HDFC Securities, noted that a hawkish stance by the US Federal Reserve, coupled with a five-day outflow from gold exchange-traded funds, has pushed gold to its weakest level since early February. Parmar added that rising energy-driven inflation is keeping pressure on gold prices as bond yields climb.

Precious metals also fell in overseas markets. Spot silver tumbled USD 4.88, or 6.48 per cent, to USD 70.49 per ounce, while gold declined USD 140.19, or nearly 3 per cent, to USD 4,678.69 per ounce. Jateen Trivedi, VP Research Analyst at LKP Securities, highlighted that gold prices slipped below USD 4,700 per ounce, recording a sharp USD 100 correction in a single session and nearly USD 300 over two days due to macroeconomic headwinds.

On Wednesday, US Federal Reserve Chair Jerome Powell acknowledged that rising crude prices are contributing to inflation while cautioning that the economic impact of ongoing geopolitical conflicts remains uncertain. Powell emphasised that inflation remains elevated and the central bank will adopt a wait-and-watch approach.

Manav Modi, Analyst at Motilal Oswal Financial Services, said investors are now closely watching policy decisions from the Bank of England and the European Central Bank. Trivedi added that the short-term trend for precious metals remains weak to volatile, with price movements likely to react sharply to interest rate expectations and geopolitical developments.