New Delhi, April 2 Silver prices plummeted by Rs 9,000 to Rs 2.37 lakh per kilogram in the national capital on Thursday, while gold declined by Rs 3,500 to Rs 1.51 lakh per 10 grams amid a bearish sentiment in the domestic market.
According to the All India Sarafa Association, the white metal depreciated by Rs 9,000, or 3.66 per cent, to Rs 2,37,000 (inclusive of all taxes) from Thursday's closing level of Rs 2,46,000 per kg.
Gold of 99.9 per cent purity also declined by Rs 3,500, or 2.26 per cent, to Rs 1,51,500 per 10 grams (inclusive of all taxes).
"Precious metals declined on Thursday after US President Donald Trump's much-anticipated address provided limited clarity on resolving the conflict in West Asia," said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
Trump said that Washington's core strategic objectives with reference to the war could be nearing completion, but warned Tehran of potential military strikes over the next 2-3 weeks.
This has heightened fears of further escalation, dampening hopes of a swift resolution and prolonging disruptions to energy flows through the Strait of Hormuz, Gandhi added.
In the international market, spot silver plummeted by USD 5.49, or 7.32 per cent, to USD 69.57 per ounce, while gold declined by USD 166.79, or 3.51 per cent, to USD 4,591.52 per ounce.
Spot gold ended the sharp surge of three sessions on Thursday as crude oil has surged again after US President Trump's warning that Iran will be hit hard in the next two-three weeks, Praveen Singh, Head of commodities, Mirae Asset ShareKhan, said.
After the remarks, the US dollar gained 0.5 per cent to sustain the 99-100 level, adding pressure on the precious metal prices in the overseas trade, he added.
"Traders will focus on US non-farm payroll report due to be released on Friday. A robust job report will intensify the downside pressure on the yellow metal on Monday as markets will be closed tomorrow (Friday) on account of Good Friday," Singh said.
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