Planning to Buy Gold? Prices Suddenly Crash, Silver Takes a Massive Hit Too

Precious metal prices witnessed a sharp decline on Monday as rising crude oil prices, stronger US dollar and fresh geopolitical tensions weighed on investor sentiment.

Gold and silver prices recorded a significant fall in the domestic bullion market on Monday, with gold slipping by Rs 2,500 per 10 grams and silver becoming cheaper by Rs 5,000 per kilogram.

According to market data, gold of 99.9 per cent purity declined by Rs 2,500, or 1.53 per cent, to Rs 1,60,400 per 10 grams from its previous closing level of Rs 1,62,900 per 10 grams.

The decline came amid renewed military tensions between the United States and Iran, which pushed crude oil prices higher and strengthened the US dollar. Analysts said the stronger dollar and rising bond yields reduced investor appetite for precious metals.

Silver also witnessed a sharp correction during the trading session. The price of silver fell by Rs 5,000 per kilogram, nearly 2 per cent, to Rs 2,69,700 per kg from the previous close of Rs 2,74,700 per kg.

Market experts noted that precious metals started the week under pressure as geopolitical developments triggered volatility in global financial markets. Higher crude oil prices and rising US Treasury yields further added to the weakness in gold and silver.

Global Markets Also Under Pressure

Internationally, gold prices also traded lower during the day. Spot gold slipped nearly 1 per cent and hovered around $4,500 per ounce, reflecting cautious investor sentiment.

Silver, however, showed a different trend in overseas markets and traded near $76 per ounce, registering gains despite the weakness in domestic prices.

Analysts believe investors are closely monitoring economic developments in the United States. Key factors expected to influence the precious metals market this week include US employment data, comments from Federal Reserve officials and signals regarding future interest-rate decisions.

Why Gold And Silver Prices Fell

Experts attributed the decline to several factors:

• Renewed US-Iran tensions that boosted crude oil prices
• Strengthening of the US dollar
• Rise in US bond yields
• Profit-booking after recent gains in precious metals
• Investor focus shifting towards upcoming US economic data

Despite the short-term correction, analysts said geopolitical uncertainty and global economic concerns could continue to influence gold and silver prices in the coming days.

With gold falling to Rs 1.60 lakh per 10 grams and silver dropping by Rs 5,000 per kg in a single session, investors are closely watching whether the correction deepens or buying interest returns at lower levels.

Disclaimer: Precious metal prices are subject to market fluctuations and may vary across cities and jewellers. Investors should consult financial experts before making investment decisions.