Gold, silver prices continue to fall amid global uncertainty

Gold and silver prices witnessed another sharp decline on Wednesday in both futures and domestic bullion markets. Silver prices fell by more than ₹4,000 per kg in a single trading session, while gold prices also dropped by over ₹600 per 10 grams on the Multi Commodity Exchange (MCX).

On MCX, silver prices initially touched ₹2,72,628 per kg before suddenly falling to ₹2,66,200 per kg. This means silver became cheaper by ₹4,428 per kg within hours. In the first three days of the current week, silver prices have fallen ₹5,646 per kg. Compared to its all-time high of ₹4,57,328 per kg recorded in January, silver has declined by ₹1,91,128 so far.

Gold prices also remained under pressure. Gold futures on MCX slipped from Tuesday’s closing level of ₹1,57,616 per 10 grams to ₹1,56,953 on Wednesday. Gold futures for June 5 delivery are now trading ₹ 46,031 lower than their peak level of ₹2,02,984.

According to the Indian Bullion Jewellers Association (IBJA), the price of 24 carat gold in the Delhi spot market declined from ₹1,57,611 to ₹1,57,040 per 10 grams. Silver prices in Delhi also fell sharply by ₹4,503 to ₹2,61,710 per kg.

Market analysts say the sharp fall in precious metals is mainly due to a stronger US dollar and rising US bond yields. Since gold and silver are priced globally in dollars, a stronger dollar makes them expensive for international buyers, reducing demand. Experts also believe that investors are booking profits after the massive rally seen in precious metals over the past several months. 

Global geopolitical tensions are also affecting the bullion market. Concerns over the US-Iran conflict and uncertainty around the Gulf of Hormuz have increased volatility in global commodity markets. Reports suggest that changing expectations about US Federal Reserve interest rate policies have also weakened investor sentiment toward non-yielding assets like gold and silver.

Experts say silver prices are falling faster than gold because silver is linked not only to investment demand but also to industrial demand. Weak global industrial outlook and uncertainty in international markets have added extra pressure on silver prices. 

Despite the recent crash, analysts believe that gold and silver may remain important safe haven investment options in the long term. However, they warn that prices could remain highly volatile in the coming weeks due to global political tensions, fluctuations in the US dollar, and changing economic policies worldwide.