Gold, silver plunge up to 6% on global weakness, rupee hits 93.84 against US dollar

Gold and silver prices in India traded sharply lower on Monday, tracking weakness in global bullion markets amid rising concerns over inflation and potential interest rate hikes following escalating US-Iran tensions. 

On the Multi Commodity Exchange (MCX), gold futures dropped steeply at the opening. Gold futures (April 2) fell as much as 5.59%, or ₹8,089, to hit an intra-day low of ₹ 1,36,403 per 10 grams by 9.40 am, while silver declined 6.63%, or ₹15,043, to ₹2,11,729 per kg.

Silver was later trading at ₹2,14,745, down ₹12,027 or 5.3%, while gold was at ₹1,37,924, lower by ₹6,568 or 4.5%.

In the international market, bullion prices also extended their decline, with gold falling to a nearly four-month low.

Spot gold slipped 3.80% to $4,320.19 per ounce, its ninth consecutive session of losses, while US gold futures dropped 4%.

Silver prices also weakened globally, with spot silver falling 4.65% to $64.63 per ounce.

Analysts said the sharp correction in precious metals reflects a shift in investor sentiment, as rising geopolitical tensions have heightened inflationary risks and raised expectations of tighter monetary policy globally.

Gold prices had already declined more than 10% last week, indicating sustained selling pressure in global markets.

Market participants will now closely watch further developments in geopolitical tensions and the global interest rate outlook, which are expected to influence bullion prices in the near term.

Meanwhile, crude oil prices surged amid escalating tensions in West Asia, with Brent crude futures rising 0.68% to $112.95 per barrel, while US WTI crude futures traded 3.32% higher at $101.50.

In the currency market, the rupee hit a fresh low of 93.84 against US dollar. Equity benchmarks also opened lower, with Sensex and Nifty declining 2% each.

(This story was taken from syndicated feed and was only edited for style by Gujarat Samachar Digital team)