Gold and silver crash 5-7 percent amid inflation fears and geopolitical risks

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Gold and silver prices in India traded sharply lower on Monday, following declines in global bullion markets. Rising concerns over inflation and possible interest rate hikes due to escalating US-Iran tensions drove the sharp correction in precious metals.

Gold and silver tumble on MCX at around 6 percent

On the Multi Commodity Exchange (MCX), gold futures for April 2 opened with steep losses, falling as much as 5.59 per cent, or Rs 8,089, to hit an intra-day low of Rs 1,36,403 per 10 grams by 9:40 am. Silver also declined sharply, down 6.63 per cent, or Rs 15,043, to Rs 2,11,729 per kilogram.

Later in the day, gold was trading at Rs 1,37,924, lower by Rs 6,568 or 4.5 per cent, while silver was at Rs 2,14,745, down Rs 12,027 or 5.3 per cent.

Gold prices in Mumbai

For consumers, today's gold prices in Mumbai are Rs 14,002 per gram for 24-karat gold (99.9 percent purity), Rs 12,835 per gram for 22-karat gold (91.6 percent purity) and Rs 10,502 per gram for 18-karat gold (75 percent purity).

Analysts suggest that bullion prices will continue to be influenced by developments in geopolitical tensions, inflation data, and global interest rate trends in the coming days.

Global bullion markets also see losses

Internationally, gold prices extended their losses, hitting a nearly four-month low. Spot gold slipped 3.80 per cent to USD 4,320.19 per ounce, marking its ninth consecutive session of decline, while US gold futures dropped 4 per cent.

Silver prices also weakened globally, with spot silver down 4.65 per cent to USD 64.63 per ounce. Analysts said the declines reflect a shift in investor sentiment, as rising geopolitical tensions have increased inflationary risks and expectations of tighter monetary policies worldwide.

"Gold has already fallen over 10 per cent last week, showing sustained selling pressure in global markets," said a market analyst as per IANS reports.

Geopolitical tensions push crude

While gold and silver declined, crude oil prices surged due to rising tensions in West Asia. Brent crude futures increased 0.68 per cent to USD112.95 per barrel, and US WTI crude futures traded 3.32 per cent higher at USD 101.50.

Rupee hits all time low

The Indian rupee also weakened, hitting a fresh low of 93.84 against the US dollar. Equity markets mirrored the trend, with Sensex and Nifty both opening 2 per cent lower on Monday.

(With IANS Inputs)