Gold prices drop by over ₹7,000, silver rates also decline; check latest prices

Mumbai (The Uttam Hindu): Amid ongoing tensions in the Middle East, gold and silver prices have witnessed a sharp decline. Gold, usually considered a safe-haven investment, is currently under pressure and is close to wiping out its yearly gains.

According to a Bloomberg report, gold prices fell by around 3.8% to approximately $4,320 per ounce, nearing last year’s levels. The continuous decline over eight sessions has surprised markets and is being counted among the steepest weekly drops since 1983.

The impact is clearly visible in the domestic market as well. On MCX, silver prices dropped by about 6% or ₹13,606 to ₹2,13,166 per kilogram. Meanwhile, gold declined nearly 5% or ₹7,115 to ₹1,37,377 per 10 grams. In international markets, spot gold in Singapore fell 3.3% to $4,343 per ounce, while silver dropped 3.4% to $65.61 per ounce. Platinum and palladium also recorded losses, indicating overall pressure in the precious metals market.

Experts believe the primary reason behind this fall is rising inflation and shifting expectations regarding interest rates. Several central banks, including the Federal Reserve, have संकेत that interest rate cuts are unlikely in the near term. Higher interest rates are generally negative for gold, as it does not offer any yield.

Additionally, rising crude oil prices due to Middle East tensions have increased inflationary pressure. This has also led to “forced selling” in the market, where investors sell gold to cover losses in other asset classes, further pushing prices down.

Rising geopolitical tensions among Iran, Israel, and the United States have increased uncertainty in global markets, and this impact is now clearly visible in the prices of precious metals.