Gold and Silver Prices Plunge Sharply Amid Global Market Volatility and Geopolitical Tensions

On the Multi Commodity Exchange (MCX), gold prices dropped by Rs 3,947 to settle at Rs 1,55,600 per 10 grams on Friday. Silver recorded an even steeper decline, falling by Rs 16,595 to Rs 2,48,201 per kilogram. The one-day fall in silver represented a sharp decline of 6.27 percent.

The weakness was also visible in local bullion markets. According to the Indian Bullion and Jewellers Association, gold was trading at approximately Rs 1,54,238 per 10 grams by the close of trading on Friday. Silver also came under substantial selling pressure. In Delhi's bullion market, silver prices declined by Rs 5,000 in a single day to Rs 2,60,700 per kilogram.

Across major Indian cities, 24-carat gold prices remained around similar levels. Gold was priced at Rs 1,55,180 per 10 grams in Delhi, Rs 1,55,450 in Mumbai, Rs 1,55,370 in Patna, Rs 1,55,430 in Jaipur, Rs 1,55,490 in Kanpur, and Rs 1,55,490 in Lucknow.

Silver prices also reflected the broader market downturn. The metal was trading at Rs 2,48,190 per kilogram in Delhi, Rs 2,48,620 in Mumbai, Rs 2,48,490 in Patna, Rs 2,48,590 in Jaipur, Rs 2,48,690 in Kanpur, and Rs 2,48,690 in Lucknow.

The weakness extended to international markets as well. Spot gold declined to approximately ,470.79 per ounce, while silver was trading at .89 per ounce. Market analysts believe that changing investor sentiment amid geopolitical uncertainty has directly affected precious metal prices.

Commenting on the trend, Elias Haddad of Brown Brothers Harriman & Company said gold is currently facing pressure from two major factors. Rising returns linked to interest rates are making alternative investments more attractive, while a stronger United States dollar is reducing investor demand for gold. Haddad warned that both gold and silver prices could witness further declines in the coming period, particularly if they fall below their respective 200-day moving averages. According to him, such a development would indicate weakening long-term market sentiment and could signal additional downside risks for precious metals.

The sharp correction in gold and silver prices highlights the growing influence of global economic uncertainty, monetary policy expectations, currency movements, and geopolitical tensions on bullion markets. Investors and traders are closely monitoring these developments as precious metals continue to navigate a highly volatile environment.