Gold, Silver Prices Tumble Sharply Despite Rising West Asia Tensions
MUMBAI — Gold and silver prices plunged sharply on Thursday, defying expectations of a safe-haven rally amid escalating geopolitical tensions in West Asia, as heavy selling pressure pushed both metals to multi-week lows.
According to data from the India Bullion and Jewellers Association, the price of 24-carat gold fell to Rs 1,47,889 per 10 grams, down from Rs 1,54,879 in the previous session — a steep one-day drop of Rs 6,990.
Silver saw an even sharper decline, with prices falling to Rs 2,29,873 per kilogram from Rs 2,49,907, marking a drop of Rs 20,034 in a single trading session.
The downturn extends a broader slide in precious metals over the past week. Gold has fallen by more than Rs 12,000, while silver has dropped over Rs 38,000, signaling sustained weakness across the segment.
The sell-off was also evident on the Multi Commodity Exchange. During evening trading, gold contracts for April delivery were down 6.87 percent, or Rs 10,509, at Rs 1,42,516 per 10 grams. Silver contracts for May delivery declined 11.94 percent, or Rs 30,297, to Rs 2,23,400 per kilogram.
Intraday volatility remained high. April gold futures opened at Rs 1,51,941, climbed to a high of Rs 1,52,449, and later dropped to Rs 1,41,121 per 10 grams — the lowest level since early February.
Similarly, May silver futures opened at Rs 2,45,000, reached a high of Rs 2,45,674, and fell to an intraday low of Rs 2,14,212 per kilogram.
With Thursday’s losses, silver has now declined more than 20 percent so far this month, putting it on track for a second consecutive monthly loss.
Market analysts attributed the sharp price swings to a combination of geopolitical uncertainty, currency movements, and commodity market dynamics. Rising tensions in West Asia, coupled with fluctuations in the U.S. dollar and crude oil prices, have added to volatility rather than supporting prices.
Concerns about a potential escalation involving the United States and Iran have further unsettled global markets, contributing to the unexpected drop in precious metals despite traditionally serving as safe-haven assets. (Source: IANS)
