Gold and silver prices in India saw significant declines on Monday, following a global trend of weakness in bullion markets due to concerns over inflation and potential interest rate hikes amid US-Iran tensions. On the Multi Commodity Exchange (MCX), gold futures for April dropped by 5.59%, reaching an intra-day low of Rs 1,36,403 per 10 grams, while silver fell by 6.63% to Rs 2,11,729 per kg.
Silver prices further decreased to Rs 2,14,745, down by 5.3%, and gold was at Rs 1,37,924, lower by 4.5%. Internationally, both gold and silver prices continued to decline, with gold hitting a nearly four-month low. Spot gold fell by 3.80% to $4,320.19 per ounce, marking its ninth consecutive session of losses, while US gold futures dropped by 4%.
The global market also witnessed a decline in silver prices, as spot silver fell by 4.65% to $64.63 per ounce. Analysts attribute this sharp correction in precious metals to a change in investor sentiment, driven by escalating geopolitical tensions that have increased inflation risks and expectations of tighter monetary policies worldwide. Last week, gold prices had already fallen by over 10%, indicating sustained selling pressure in global markets.
Market observers are closely monitoring geopolitical developments and the global interest rate scenario, expecting these factors to impact bullion prices in the near future. Meanwhile, crude oil prices surged due to rising tensions in West Asia, with Brent crude futures climbing by 0.68% to $112.95 per barrel, and US WTI crude futures trading 3.32% higher at $101.50. In the currency market, the rupee hit a new low of 93.84 against the US dollar, while equity benchmarks like Sensex and Nifty opened lower, each declining by 2%.
