NEW DELHI — Gold and silver prices fell sharply on Monday, pressured by profit-taking, a stronger U.S. dollar, and rising real yields, as geopolitical tensions continued to weigh on global commodity markets.
Gold futures for April delivery on the Multi Commodity Exchange (MCX) dropped 6.91 percent to Rs 1,34,506 per 10 grams in intraday trading around 3:30 p.m., while silver futures for May delivery declined 8.84 percent to Rs 2,06,716 per kilogram.
Analysts said the selloff was driven by aggressive profit booking, wiping out an estimated $2 trillion in market value within hours.
The U.S. dollar strengthened during the session, with the dollar index rising 0.45 percent to 100.10, making dollar-denominated bullion more expensive for buyers using other currencies. At the same time, the Indian rupee weakened by 33 paise to hit a fresh all-time low of 93.86 against the U.S. dollar.
In global markets, spot prices also moved lower. Comex gold fell more than 2.4 percent to around $4,492 an ounce, while silver dropped 4.7 percent to just above $67 an ounce.
Earlier in the session, gold prices had plunged more than 10 percent to approximately Rs 1.29 lakh per 10 grams in domestic futures trading before recovering some losses.
Market watchers said rising oil prices have increased input costs and heightened fears of a global economic slowdown, reinforcing expectations that interest rates could remain higher for longer. Elevated real yields tend to reduce the appeal of non-yielding assets such as gold, weakening demand for bullion as an inflation hedge.
Geopolitical uncertainty also remained a key driver. President Donald Trump’s 48-hour deadline for Iran to fully reopen the Strait of Hormuz was set to expire Monday, raising concerns among commodity traders. Trump had warned that Iran’s power plants would be “obliterated” if shipping lanes were not reopened.
Iran, however, said the strait remains operational and warned of potential strikes on energy infrastructure in Gulf countries, adding to market volatility.
Despite the sharp decline, market participants advised investors against panic selling, urging them to continue systematic investment plans and use price corrections as an opportunity to accumulate assets at lower levels. (Source: IANS)
