Mumbai, March 23: On the first trading day of the week, precious metals experienced a significant decline amid escalating conflicts in the Middle East. Increased tensions from the U.S.-Iran conflict led to a sharp rise in crude oil prices, resulting in a downturn across the stock and commodity markets.
According to data from the India Bullion and Jewellers Association (IBJA), the price of 999 purity gold fell to ₹139,569 per 10 grams on Monday, down from ₹147,218 on Friday. This marks a staggering drop of ₹7,649 in just one day.
In terms of silver, the price for 999 purity silver also saw a decline, dropping to ₹219,260 per kilogram from ₹232,364 per kilogram the previous Friday. This represents a decrease of ₹13,104 per kilogram in a single day.
The IBJA reported that last Friday, the price of 999 purity gold was ₹147,218 per 10 grams, while silver was priced at ₹232,364 per kilogram.
Additionally, on the Multi Commodity Exchange (MCX), prices for gold and silver continued to fall. As of around 5:28 PM, gold for April delivery was trading at ₹139,359 per 10 grams, down 3.55% or ₹5,133. Meanwhile, silver for May delivery was down 2.81% or ₹6,383, trading at ₹220,389 per kilogram.
On Monday, gold for April delivery opened at ₹140,158, reaching a high of ₹140,659 and a low of ₹129,595 per 10 grams during the day. Silver for May delivery opened at ₹217,702, hitting a high of ₹223,967 and a low of ₹199,643 per kilogram.
Experts suggest that the rising tensions in West Asia have contributed to instability in the global markets, leading to the recent decline in gold and silver prices. They note that fears of renewed inflation due to the U.S.-Iran conflict have dampened expectations for interest rate cuts by the U.S. Federal Reserve. Over the past three weeks, the demand for the U.S. dollar has increased amid the ongoing conflict.
According to analysts, the stringent stance of the U.S. Federal Reserve and other central banks worldwide may allow U.S. Treasury yields and the dollar to perform better than other assets. Consequently, despite the escalating U.S.-Iran conflict, gold and silver prices are falling, primarily influenced by the situation and crude oil prices. Meanwhile, inflation concerns are putting pressure on the markets, compounded by the hawkish stance of the Federal Reserve and other central banks.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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