Gold, silver tumble amid dollar strength and geopolitical tensions
NEW DELHI, India — Gold and silver prices fell sharply Monday, pressured by profit-taking, a stronger U.S. dollar, and rising real yields as geopolitical tensions unsettled global markets.
On India’s Multi Commodity Exchange, gold futures for April delivery dropped 6.91 percent to ₹134,506 per 10 grams in intraday trading. Silver futures for May delivery declined even more steeply, falling 8.84 percent to ₹206,716 per kilogram.
Analysts said the sell-off wiped out roughly $2 trillion in market value within hours, driven by aggressive profit booking following recent highs.
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 holders of other currencies. The Indian rupee also weakened, falling 33 paise to a record low of 93.86 against the dollar.
In global markets, spot gold traded lower, with Comex gold down more than 2.4 percent to about $4,492 an ounce. Silver fell 4.7 percent to just above $67 per ounce.
Earlier in the day, gold prices had dropped more than 10 percent in domestic futures markets to around ₹129,000 per 10 grams before recovering some losses.
Market watchers said rising oil prices have increased input costs and fueled concerns about a potential economic slowdown, reinforcing expectations that interest rates could remain higher for longer. Elevated real yields tend to reduce the appeal of non-yielding assets like gold as a hedge against inflation.
Tensions in the Middle East also weighed on sentiment. President Donald Trump’s 48-hour deadline for Iran to fully reopen the Strait of Hormuz was set to expire Monday, raising concerns among commodities traders. Trump had warned that Iranian power infrastructure could be “obliterated” if shipping lanes were not kept open.
Iranian officials responded with threats targeting energy infrastructure in Gulf countries, while maintaining that the Strait of Hormuz remains open and operational, with additional measures in place due to wartime conditions.
Despite the volatility, market participants urged investors to avoid panic selling and continue systematic investment plans, using price corrections as an opportunity to accumulate assets at lower levels. (Source: IANS)
