Gold & Silver Prices Drop Steeply; Indian Rupee Weakens To New Low

Gold and silver prices in India witnessed a sharp decline on Monday, mirroring weakness in global bullion markets amid rising concerns over inflation and potential interest rate hikes linked to escalating tensions involving the United States and Iran.

On the Multi Commodity Exchange (MCX), gold futures for April 2 dropped as much as 5.59 per cent, falling by ₹8,089 to an intra-day low of ₹1,36,403 per 10 grams.

Silver also plunged 6.63 per cent, declining ₹15,043 to ₹2,11,729 per kilogram. Later in the session, silver traded at ₹2,14,745, down 5.3 per cent, while gold stood at ₹1,37,924, lower by 4.5 per cent.

In international markets, bullion prices extended losses, with gold slipping to a nearly four-month low.

Spot gold declined 3.80 per cent to $4,320.19 per ounce, marking its ninth consecutive session of losses, while US gold futures fell around 4 per cent. Spot silver also dropped 4.65 per cent to $64.63 per ounce.

Analysts attributed the sharp correction to shifting investor sentiment, as geopolitical tensions have increased inflationary risks and strengthened expectations of tighter global monetary policy.

Gold prices had already fallen over 10 per cent last week, indicating sustained selling pressure.

Meanwhile, crude oil prices surged amid West Asia tensions, with Brent crude rising 0.68 per cent and US WTI gaining over 3 per cent.

In currency markets, the rupee weakened to a record low of 93.84 against the US dollar, while equity indices Sensex and Nifty opened about 2 per cent lower.

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