Gold and Silver Prices Plummet Amid Global Concerns

Gold and Silver Prices Plummet Amid US-Iran Tensions​

Gold and silver prices in India experienced a sharp decline on Monday, mirroring weakness in global bullion markets. Concerns over inflation and potential interest rate hikes, fueled by escalating US-Iran tensions, contributed to the downturn.

Precious Metals Decline on MCX​

On the Multi Commodity Exchange (MCX), gold futures saw a steep drop at the opening. Gold futures (April 2) decreased by as much as 5.59 per cent, or Rs 8,089, reaching an intra-day low of Rs 1,36,403 per 10 grams by 9:40 am. Silver also declined significantly, falling by 6.63 per cent, or Rs 15,043, to Rs 2,11,729 per kg.

Later, silver traded at Rs 2,14,745, a decrease of Rs 12,027 or 5.3 per cent, while gold was at Rs 1,37,924, down Rs 6,568 or 4.5 per cent.

International Market Trends​

International bullion prices followed the downward trend, with gold reaching a near four-month low. Spot gold slipped 3.80 per cent to $4,320.19 per ounce, marking its ninth consecutive trading day of losses. US gold futures decreased by 4 per cent.

Silver prices also weakened globally, with spot silver falling by 4.65 per cent to $64.63 per ounce.

Analysts attribute the sharp correction in precious metals to a shift in investor sentiment, driven by rising geopolitical tensions and the anticipation of tighter monetary policy worldwide. Gold prices had already fallen more than 10 per cent last week, reflecting sustained selling pressure in global markets.

Crude Oil and Currency Market Updates​

Amid escalating tensions in West Asia, crude oil prices surged. Brent crude futures rose by 0.68 per cent to $112.95 per barrel, while US WTI crude futures traded 3.32 per cent higher at $101.50.

In the currency market, the rupee reached a new low of 93.84 against the US dollar. Equity benchmarks also opened lower, with the Sensex and Nifty declining by 2 per cent each.