Gold and Silver Prices Crash: Gold Falls Over ₹3,000, Silver Becomes ₹19,000 Cheaper

Gold and silver prices witnessed a sharp decline on Friday as global market pressure, rising US bond yields, and a stronger dollar triggered heavy selling in precious metals. Both domestic and international bullion markets remained under pressure throughout the trading session, pushing gold to a one-week low and causing silver prices to tumble significantly.

On the Multi Commodity Exchange (MCX), gold prices during the day dropped to around ₹1,58,850 per 10 grams, which was more than ₹3,100 lower than the previous closing price of ₹1,61,978.

Silver prices saw an even steeper correction. MCX silver plunged by nearly ₹19,000 per kilogram and slipped to around ₹2,72,267 per kilogram compared to the previous closing level of ₹2,91,100.

Why Are Gold and Silver Prices Falling?

Market experts say the biggest reason behind the fall is growing concern about inflation in the United States due to rising crude oil prices.

Higher oil prices are increasing fears that inflation could remain elevated for a longer period, reducing expectations of interest rate cuts by the US Federal Reserve. As a result, US Treasury yields climbed close to one-year highs, making non-interest-bearing assets like gold less attractive for investors.

At the same time, the US dollar strengthened sharply this week, adding further pressure on bullion prices globally.

Rupee Weakness Also Impacting Indian Market

In India, the weakening of the rupee against the US dollar also contributed to volatility in gold and silver prices.

Although a weaker rupee generally makes imported gold more expensive, broader global selling pressure and profit booking dominated market sentiment on Friday.

Gold Prices in Major Indian Cities

In Mumbai, 24-carat gold was trading near ₹1,60,090 per 10 grams, while 22-carat gold was priced around ₹1,46,750 per 10 grams. These prices do not include GST and jewellery making charges.

Market rates in other cities also remained under pressure due to the global correction.

International Gold Market Under Pressure

Internationally, spot gold continued its losing streak for the fourth consecutive session. Gold prices reportedly declined by nearly 1.5% and traded around $4,579.19 per ounce, marking the lowest level since May 6.

US gold futures for June delivery also fell sharply to nearly $4,582.60 per ounce.

Analysts say rising Treasury yields significantly increased the opportunity cost of holding gold, reducing investor demand.

According to market commentary quoted from Reuters, analysts believe multiple global factors are hurting gold simultaneously, including:

• Rising oil prices
• Persistent inflation concerns
• Stronger US dollar
• Higher bond yields
• Reduced expectations of US rate cuts

Silver Also Faces Heavy Selling

Silver prices came under additional pressure due to weakness in industrial metal demand and profit booking after recent highs.

International spot silver declined sharply as investors shifted toward safer interest-yielding assets amid rising uncertainty in global markets.

Iran Conflict and Oil Prices Affecting Markets

Geopolitical tensions linked to the ongoing conflict involving Iran also influenced commodity markets. Brent crude oil prices reportedly climbed above $106 per barrel this week after disruptions around the Strait of Hormuz raised concerns about global oil supply.

Higher oil prices have strengthened fears of long-term inflation globally, which is influencing investor decisions across commodities and financial markets.

Factors That Influence Gold Prices in India

Experts say gold prices in India are mainly affected by several domestic and global factors, including:

• International gold prices
• Import duty changes
• Rupee-dollar exchange rate
• Inflation trends
• Global geopolitical tensions
• Government taxation policies

India remains one of the world’s largest consumers of gold, where the metal holds both cultural and investment importance, especially during weddings and festivals.

Investors Advised to Stay Alert

With bullion markets witnessing sharp volatility, financial experts advise investors to closely monitor international developments, US Federal Reserve policy expectations, currency movements, and crude oil prices before making fresh investments in gold or silver.

Market analysts believe precious metals may continue to remain highly volatile in the coming weeks due to uncertain global economic conditions.