Gold, Silver Prices Drop Sharply as Global Conflict Drives Metals To Multi-Week Lows
Summarized by AI; it may make mistakes. Check important info
Summarized by AI; it may make mistakes. Check important info
Gold and silver prices in India witnessed a distinct decline on Wednesday morning, tracking a broader sell-off across international commodity markets. The retreat comes as escalating military tensions in the Middle East drive crude oil prices higher, fanning fresh inflation anxieties and boosting US Treasury yields.
In domestic trading, 24-karat gold dipped towards ₹150,000 per 10 grams, while silver registered notable losses to trade near ₹231,000 per kilogram.
International Headwinds Pressure Precious Metals
Spot gold overseas dropped 0.6% to $4,304.01 per ounce—marking its lowest level since early August and extending a four-day losing streak. Analysts point to a fresh wave of US airstrikes against targets in Iran and subsequent retaliatory moves, which sent global oil prices higher for a third consecutive session.
The surging energy costs have rekindled fears of lingering inflation, prompting investors to recalculate expectations around US Federal Reserve policy. With rising Treasury yields offering competing returns, non-yielding metals have faced sustained selling pressure.
MCX Market Updates
The impact of international cues was immediately reflected on the domestic futures market during early trade:
- MCX Gold Futures: Traded 1.07% lower at ₹150,530 per 10 grams.
- MCX Silver Futures: Slipped by 1.26% to ₹231,830 per kilogram.
Market observers suggest that domestic buyers may see volatile price movements in the coming sessions as bullion continues to react to geopolitical updates and international energy benchmarks.
