Weak Global Cues Drive Gold and Silver Price Decline

Gold and Silver Prices Plunge Amid Inflation Concerns​

Domestic Market Reaction​

On Monday, March 30, gold and silver prices experienced a significant decline in the Indian market, aligning with global trends. On the Multi Commodity Exchange (MCX), gold contracts for June 5 delivery opened 0.27 per cent lower at Rs 1,46,850 per 10 grams. The precious metal experienced a sharp decline during the session, falling as much as Rs 3,043, or 2.06 per cent, to hit an intraday low of Rs 1,44,212 per 10 grams. Silver futures (May 5) also came under pressure, declining as much as 0.96 per cent to Rs 2,25,763 per kg, compared to the previous close of Rs 2,27,954.

International Market Trends​

Globally, gold prices were influenced by a surge in energy prices resulting from the ongoing US-Iran conflict, which exacerbated inflation concerns and reduced expectations of interest rate cuts by the US Federal Reserve. Spot gold declined by 1.61 per cent to $4,420.48 per ounce, while spot silver dropped by around 3 per cent to $67.69 per ounce. COMEX gold fell by 1.69 per cent to $4,447.50, and COMEX silver slipped by nearly 3 per cent to $67.72.

Monthly Performance​

Gold prices have declined by approximately 15 per cent so far this month, representing their steepest monthly decline since October 2008. Silver prices have also plummeted, falling nearly 30 per cent from their March peak.

Analyst Outlook​

Analysts noted that despite intermittent safe-haven demand stemming from geopolitical tensions, gold continues to trade with a weak undertone. The near-term outlook for precious metals remains cautious, with prices expected to be driven by macroeconomic cues, interest rate expectations, and geopolitical developments.