Gold and Silver Prices Decline Amid Weak Global Trends and Domestic Selling
Mumbai: Gold prices saw a significant drop of Rs 1,550, closing at Rs 91,450 per 10 grams in the national capital on Monday. This decline follows a broader trend of heavy selling by jewellers and stockists, alongside weak global market conditions, according to the All India Sarafa Association.
On Friday, the price of 99.9% pure gold had finished at Rs 93,000 per 10 grams, marking a sharp Rs 1,550 reduction in just a few days. Similarly, gold of 99.5% purity also witnessed a drop of Rs 1,550, ending at Rs 91,000 per 10 grams compared to the previous close of Rs 92,550 per 10 grams.
“Gold prices tumbled as panic selling in equity markets and other asset classes continued to weigh down on safe-haven precious metals,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
In addition to the drop in gold prices, silver also experienced a significant fall, continuing its losing streak for the fifth consecutive day. Silver prices fell by Rs 3,000, closing at Rs 92,500 per kg, down from Friday’s price of Rs 95,500 per kg. Over the past five sessions, silver has plunged by Rs 10,500 per kg.
On the global front, spot gold saw a decline of USD 10.16, or 0.33%, settling at USD 3,027.20 per ounce. Market sentiment remained cautious as investors awaited further clarity from the US on its next steps, especially amid escalating trade tensions.
Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, noted that the upcoming US Consumer Price Index (CPI) data would be crucial in shaping expectations regarding interest rate cuts, potentially influencing the global gold market. He also pointed out that investors would closely watch the Reserve Bank of India’s policy meeting later this week for further insights into domestic monetary policy.
In contrast, spot silver in the Asian market rose by 1.65%, reaching USD 30.04 per ounce, offering a glimmer of optimism for the silver market amidst the overall downturn.
Kotak Securities attributed the sharp decline in gold prices to a broader market slump driven by concerns over US President Donald Trump’s tariffs and China’s retaliatory measures, which have dampened investor sentiment globally.
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